In the Short Run, a Purely Competitive Firm Can Be

question 8

Multiple Choice

In the short run, a purely competitive firm can be expected to shut down if:

• A) price is less than short run average cost.
• B) price is less than average variable cost.
• C) price is less than average fixed cost.
• D) total costs exceed total revenue.
• E) short-term marginal cost is above average variable cost.