Log in
Economics
1
answer
0
watching
234
views
2 Mar 2019

A perfectly competitive firm will shut down immediately when the market price falls below
(a) average variable cost.(b) average total cost.(c) average fixed cost.(d) marginal cost.(e) None of the above.

Watch
1
answer
0
watching
234
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Keith Leannon
Keith LeannonLv2
4 Mar 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

When a perfectly competitive firm decides to shut down, it is most likely that:

A) marginal cost is above average variable cost

B) marginal cost is above average total cost

C) price is below the firm's average variable cost

D) fixed costs exceed variable costs

 

When a perfectly competitive firm decides to shut down, it is most likely that
a. marginal cost is above average variable cost.
b. marginal cost is above the average total cost.
c. price is below the firm's average variable cost.
d. fixed costs exceed variable costs

10-When marginal cost is greater than average total cost,
A. Average total cost must be increasing with output
B. Average variable cost must be decreasing with output
C. Average fixed cost must be increasing with output
D. Marginal cost must be increasing with output

11-If a firm's demand curve falls below its AVC curve, then the firm should
A. Shut down now
B. Operate in the short run but not the long run
C. Set price = marginal cost
D. Shutdown in the long-run

12- The demand curve facing a perfectly competitive firm is
A. Upward sloping
B. Perfectly inelastic
C. Downward sloping
D. Perfectly elastic

13-If the demand curve falls below the ATC curve but lies above AVC, then the firm should
A. Should shut down
B. Operate in the short run but not the long run
C. Set price = marginal cost
D. Operate in the short run and the long run

14-At the output where MC = ATC = P, the perfectly competitive firm
A. Should shutdown
B. Has no economic profit
C. Is not profit maximizing
D. Should raise output

Related Documents

ECO 101 Chapter Notes - Chapter 14: Average Variable Cost, Marginal Revenue, Market Power
sapphirehyena996
ECON 212 Lecture Notes - Lecture 7: Average Variable Cost, Marginal Cost, Fixed Cost
blueclam159
ECON 111 Lecture Notes - Lecture 7: Fixed Investment, Liquor Control Board Of Ontario, Organized Crime
cerisegiraffe538

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in