In a Lorenz curve, perfect income equality is represented by

At its present rate of output, 200 units, a perfectly competitive firm has variable costs of $10,000 and marginal cost of $50, and accepts the market price of $40 per unit. To improve its profit/loss situation, this firm should

a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price

When faced with an economic loss, a competitive firm will shut down its operations in the short run

a. True b. False Indicate whether the statement is true or false