A monopolistic competitor shuts down production in the short run if ________
A) marginal revenue equals marginal cost
B) marginal cost equals average cost
C) total revenues do not cover variable costs
D) total revenues do not cover fixed costs
C
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In the balance of payments, a deficit item is any transaction
A. that leads to a payment by a resident of a country or its government. B. that makes residents of a country worse off. C. that leads to a receipt by a resident of a country or its government. D. that is an export of a good or service.
A government policy that would reduce the saving rate is
A. giving tax breaks to increase the real return that savers receive. B. switching the tax system to tax consumption instead of income. C. increasing the government budget surplus by cutting government spending. D. eliminating the social security system.