Multiple Choice
When total revenue is less than variable costs in the short run,what will a firm in a competitive market do
A) It will continue to operate as long as average revenue exceeds marginal cost.
B) It will continue to operate as long as average revenue exceeds average fixed cost.
C) It will shut down.
D) It will always exit the industry.
Correct Answer:
Verified
Correct Answer:
Verified
Q100: In a competitive market,what impact will the
Q101: Figure 14-5<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1272/.jpg" alt="Figure 14-5
Q102: Consider a competitive market with a large
Q103: What signals the entry and exit decisions
Q104: Why in the perfectly competitive market is
Q106: Table 14-4<br>A firm in a competitive market
Q107: The competitive firm's short-run supply curve is
Q108: As a general rule,what do we know
Q110: When a firm makes a short-run decision
Q124: In a competitive market, firms are unable