A Perfectly Competitive Firm Will Shut Down Rather Than Produce

question 10

Multiple Choice

A perfectly competitive firm will shut down rather than produce if its

• A) price is less than average variable cost.
• B) price is less than total variable cost.
• C) total revenue is less than total cost.
• D) price is less than marginal cost.

---

Definitions:

Verbal Persuasion

A method of influence involving the use of language to convince or persuade others to change their thoughts, beliefs, or actions.

Activity Failure

A situation where an attempt to perform an action does not result in the expected goal or outcome, often leading to learning or modification of efforts.

Adults

Individuals who have reached the age where they are considered legally responsible for their actions and have attained full physical development.

Correlational Method

A research approach that involves measuring two variables to identify a relationship between them, without implying causation.