Suppose the price of an item in a perfectly competitive market is $3. For a firm in this market, MC = MR at an output of 100 units. The average total cost at this output level is $4 per unit, and TVC is $80. We may conclude that

A) the firm should shut down because TC > TR.
B) the firm should continue to produce because P>AVC.
C) the firm should shut down because its TFC is $320 and its TC is $400.
D) the firm should shut down because other firms will enter the industry as the market is perfectly competitive.

B

Economics

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Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. If Dave buys 20 magazines per week, which of the following amount of pizza is not affordable to him?

A) 10 B) 20 C) 9 D) All of the above answers are correct because none of the listed amounts of pizza are affordable.

Economics

The U.S. business cycle record, in common with most, has

A) peaks lasting longer than troughs. B) troughs lasting longer than peaks. C) recessions lasting longer than expansions. D) expansions lasting longer than recessions.

Economics