If a Monopolistically Competitive Firm Is Producing an Output Level

question 185

True/False

If a monopolistically competitive firm is producing an output level where its marginal cost is equal to its marginal revenue but it still earns a loss, then it should always shut down in the short run.

---

Definitions:

Time Deposits

Savings accounts or certificates of deposit that hold a fixed sum of money for a specified period of time, during which the depositor cannot withdraw the funds without penalty.

Required Reserves

The minimum amount of reserves a bank must hold as mandated by regulatory authorities, based on a percentage of the bank's deposit liabilities.

Demand Deposits

Bank accounts from which money can be withdrawn at any time without any notice to the bank.

Original Maturity

The original length of time until a financial instrument, such as a bond or loan, is due to be repaid in full.