In the short run, a perfectly competitive firm suffering a loss
a. will close if P < AVC
b. will shut down operations if P < MC
c. cannot leave the industry even if P < AVC
d. can sell off all its resources to competitors
e. can raise the price to increase revenues
A
Economics
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"Ceteris paribus" refers to the idea that if more than two variables are graphed, only one variable must be held constant
Indicate whether the statement is true or false
Economics
Minimum wages are examples of
A) a price floor. B) a price ceiling. C) the rationing function of prices not working. D) government increasing the demand for certain products.
Economics