In the short run, a perfectly competitive firm will shut down if
A) it incurs any economic loss.
B) price equals average cost.
C) total revenue is less than total variable cost.
D) total revenue is less than total fixed cost.
C
You might also like to view...
Activists believe that
A) there is sufficient flexibility in wages and prices to allow the economy to equilibrate at full-employment Real GDP in a reasonable period of time. B) discretionary fiscal policies do not work. C) discretionary monetary policies do not work. D) fine-tuning to smooth out the business cycle is feasible.
If the price of movies on DVD rises while the price of movies purchased on demand through the Internet remains the same, the law of demand predicts that consumers will:
A. substitute movies on the Internet for movies on DVD. B. buy only movies on the Internet. C. buy only movies on DVD. D. substitute movies on DVD for movies on the Internet.