In the short run, a perfectly competitive firm A : might not make an economic profit. b. will always make an economic profit C. chooses its optimal plant size . d . is in equilibrium only when its economic profit is zero .

In the short run, a perfectly competitive firm A : might not make an economic profit. b. will always make an economic profit C. chooses its optimal plant size . d . is in equilibrium only when its economic profit is zero .

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 14P

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Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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