If a Perfectly Competitive Firm Is Faced with Average Revenue

question 22

Multiple Choice

If a perfectly competitive firm is faced with average revenue below average variable cost it will shut down so as to reduce its

• A)losses to the amount of its marginal costs.
• B)costs to below its revenue.
• C)costs to zero.
• D)losses to the amount of its fixed costs.
• E)losses to the amount of its variable costs.

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Definitions:

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