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In the Short Run,a Competitive Firm May Choose to Operate

Question 164

Multiple Choice

In the short run,a competitive firm may choose to operate at a loss


A) to ensure that other firms make a loss as well.
B) only if those losses are economic losses.
C) to gain market power in the future.
D) only if those losses are accounting losses.
E) to recover a portion of its fixed costs.

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