Refer to Figure 23

question 80

Multiple Choice

Refer to Figure 23.1 for a perfectly competitive firm. This firm should shut down in the short run if the market price is below

• A) $5.
• B) $10.
• C) $15.
• D) $20.

---

Definitions:

Tax

A compulsory financial charge imposed by a government on individuals or entities to fund government spending and public expenditures.

Consumer Surplus

The offset between the potential total payment by consumers for a good or service and the actual amount remitted.

Tax Revenue

The fiscal earnings that are accumulated by governments through taxation.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, representing profit or gains from trade.