Answered: If a perfectly competitive firm…

If a perfectly competitive firm operates in the short run but exits the industry in the long run, then the firm's short run condition is A) TR > TVC and TR < TC. B) TR > TC. C) TR < TVC. D) TR < TFC.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 5CQQ

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Question

39) If a perfectly competitive firm operates in the short run but exits the industry in the long run, then the firm's short run condition is
A) TR > TVC and TR < TC. B) TR > TC.
C) TR < TVC. D) TR < TFC.

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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