A perfectly competitive firm should shut down in the short-run if price falls below the minimum of
A) marginal cost.
B) marginal revenue.
C) average total cost.
D) fixed costs.
E) average variable costs.
E
You might also like to view...
Which is an example of restrictive fiscal policy?
A) An increase in the discount rate B) An increase in the federal funds rate C) An increase in reserve requirements D) A lowering of tax rates E) A lowering of government spending
Both presidents Kennedy and Reagan proposed significant cuts in income taxes because
A) they wanted to offset their proposals to increase other taxes. B) they believed that the tax cuts would enhance economic efficiency. C) state governments had increased their taxes and they believed the tax cuts they proposed would result in most citizens paying about the same total state and federal taxes. D) at the time of their proposals the federal government was experiencing budget surpluses; that is, tax revenue exceeded government expenditures.