A Perfectly Competitive Firm Will Not Produce Any Output in the Short

question 333

Multiple Choice

A perfectly competitive firm will not produce any output in the short run and will shut down if the price is:

• A)greater than marginal cost.
• B)less than marginal cost.
• C)less than average variable cost.
• D)greater than average variable cost and less than average total cost.

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Definitions:

Liver

Large, dark red internal organ that produces urea and bile, detoxifies the blood, stores glycogen, and produces the plasma proteins, among other functions.

Bovine Growth Hormone

A hormone naturally produced by cattle's pituitary glands, and its synthetic form is used to increase milk production.

Cows

Domesticated bovine animals, typically females, raised for their milk, meat, and as draft animals.

Fish

Aquatic vertebrate animals that live in water, breathe using gills, and typically have fins and scales.