In the Short Run, a Perfectly Competitive Firm Will Always

question 160

Multiple Choice

In the short run, a perfectly competitive firm will always shut down if, at all output levels above zero,

• A)price is less than average total cost
• B)total revenue is less than total cost
• C)they cannot pay variable costs with total revenue
• D)variable cost is greater than fixed cost
• E)price is less than fixed cost

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Definitions:

Case Study

a detailed investigation and analysis of a particular individual, group, event, or situation over a period of time, often used in psychological, sociological, and medical research.

Generalize

The cognitive process of applying specific instances or experiences to broader situations or categories.

Observer Effects

The changes that the act of observation makes on a phenomenon being observed, significant in the realm of quantum mechanics as well as in social sciences.

Participant Observation

A naturalistic observation in which the observer becomes a participant in the group being observed.