In the Long Run, a Perfectly Competitive Firm Will Exit

question 205

Multiple Choice

In the long run, a perfectly competitive firm will exit a market when

• A) its total revenue is less than its total cost.
• B) its marginal revenue curve is below the minimum of its average total cost curve.
• C) the price is greater than the minimum of its average total cost curve.
• D) Both answers A and B are correct.

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Definitions:

Japanese Companies

Organizations based in Japan, often characterized by specific cultural, managerial, and operational practices unique to the Japanese context.

Cooperation Philosophy

emphasizes working together and assisting each other to reach a common goal or complete a task.

Conflict Avoidance

A strategy or behavior aimed at preventing disagreements or disputes, often by evading potentially contentious issues.

Senior Executives

High-level managers or administrators in an organization, responsible for creating strategies, making major decisions, and leading the company towards its objectives.