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Question
The owner of a perfectly competitive firm that is earning economic losses in the short run
A) should alter the rate of output in order to increase profitability.
B) should cut his own salary in order to reach the break -even point.
C) is actually losing more than he thinks because not all of the implicit costs have been considered.
D) is earning less than he would if he worked for someone else.
Answer
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Related questions
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The United Statesʹ balance of payments is likely to improve whenA) there is an increase in political instability in other countries.B) the inflation rate in the United States rises relative to other countries.C) the American government increases its spending on foreign aid. D) American people want to invest more in foreign countries.