In the short run, a perfectly competitive firm will always shut down if, at all output levels above zero,
a. price is less than average total cost
b. total revenue is less than total cost
c. they cannot pay variable costs with total revenue
d. variable cost is greater than fixed cost
e. price is less than fixed cost
C
Economics
You might also like to view...
What is price discrimination? Can a perfectly competitive firm price discriminate? Explain you answer
What will be an ideal response?
Economics
If the Apple Watch and the Samsung Gear S2 are considered substitutes, then, other things equal, an increase in the price of the Apple Watch will
A) increase the quantity demanded for the Apple Watch. B) increase the quantity demanded for the Gear S2. C) increase the demand for the Gear S2. D) decrease the demand for the Apple Watch.
Economics