Multiple Choice
If, for a perfectly competitive firm, price is greater than average variable cost, then it follows that
A) total revenue is greater than total cost.
B) total revenue is greater than total variable cost.
C) the firm will lose more or earn less by shutting down in the short run than by continuing to produce.
D) b and c
E) There is not enough information to answer the question.
Correct Answer:
Verified
Correct Answer:
Verified
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