In the _________, if profits are not possible, the perfectly competitive firm will seek out the quantity of output where _____________________ .
A. long run; increasing production
B. short run; fixed costs can be reduced
C. short run; losses are smallest
D. long run; fixed costs can be eliminated
Answer:C
In the _________, if profits are not possible, the perfectly competitive firm will seek out the quantity of output where _____________________ .
A. long run; increasing production B. short run; fixed costs can be reduced C. short run; losses are smallest D. long run; fixed costs can be eliminated
Explanation: 23. In the ________, the perfectly competitive firm will react to losses by __________________________ .