For a perfectly competitive firm, in the short run, which of the following statements is true?
a. A price above minimum average variable cost, but below average total cost will produce an economic profit.
b. A price below minimum average variable cost will cause the firm to shut down.
c. Marginal cost is parallel to the axis showing quantity of output.
d. Price is always greater than marginal revenue.
e. Every firm contributes a significant amount to the total market output.
b
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An improvement in a firm's technology that improves productivity results in a(n):
A. leftward shift of the supply curve. B. upward movement along the supply curve. C. willingness to supply a larger quantity than before at any given price. D. downward movement along the supply curve.
Which of the following would give the most importance to the goal of exchange rate stability?
A. The U.S. and Japan and other developed countries B. Emerging market countries where exports and imports are central to the structure of the economy C. Europe D. Large, closed economies