Firms in a perfectly competitive market usually enter or leave an industry in the short-run and not in the long-run.
Indicate whether the statement is true or false
Question 2
When revenue is less than total cost but more than variable cost it implies that:
a. the firm is enjoying positive economic profits.
b. the firm is earning normal profits.
c. the firm can cover its variable cost and a part of its fixed costs.
d. the firm is unable to cover its costs and should shut down.
e. the firm is able to cover both its fixed and variable costs.
bio industry
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