Multiple Choice
If market price is greater than or equal to the minimum of AVC but below the minimum of AC, then
A) the firm will shut down.
B) the firm will operate because its loss is less than if it shuts down.
C) revenue is lower than variable costs.
D) profit is positive and so the firm will operate.
Correct Answer:
Verified
Correct Answer:
Verified
Q4: A firm should always shut down if
Q26: In the long run, firms in a
Q27: A firm will exit a competitive market
Q28: The short run is<br>A)usually 3-6 months.<br>B)dependent on
Q29: Producer surplus<br>A)is the minimum amount a firm
Q33: What is one reason activists might lobby
Q34: In a short run competitive equilibrium<br>A)the market
Q36: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8230/.jpg" alt=" -The above figure
Q37: When is the profit a firm earns
Q77: Which is an important aspect of the