Multiple Choice
If a firm in perfect competition finds that total revenue is less than the total costs of production, it should:
A) raise the price in order to increase total revenue.
B) shut down.
C) remain in business as long as the price exceeds average variable cost.
D) decrease the price in order to increase sales and increase total revenue.
Correct Answer:

Verified
Correct Answer:
Verified
Q2: If, for a perfectly competitive firm, the
Q3: A firm is currently maximizing profits by
Q4: The cobweb theorem explains why the price
Q5: If, for a firm in perfect competition,
Q6: A firm in perfect competition may produce
Q7: If a firm in perfect competition were
Q8: Farms have increased in size for all
Q9: Farm families compose approximately what percentage of
Q10: The cobweb theorem:<br>A) tells farmers how much
Q11: The supply curve for a firm in