When a Perfectly Competitive Firm Decides to Shut Down, It

question 292

Multiple Choice

When a perfectly competitive firm decides to shut down, it is most likely that

• A)marginal cost is above average variable cost.
• B)marginal cost is above average total cost.
• C)price is below the firm's average variable cost.
• D)fixed costs exceed variable costs.

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Definitions:

Complaint

A formal legal document initiating a lawsuit, detailing the plaintiff's claims against the defendant and the desired relief or remedy.

Diversity Of Citizenship

A basis for federal court jurisdiction when the plaintiff and defendant are citizens of different U.S. states or when a foreign entity or individual is part of the lawsuit.

Federal Court

Courts that have jurisdiction over disputes involving federal law, the U.S. Constitution, disputes between states, or cases involving different states or foreign nationals.

Geographic Distribution

The natural arrangement and dispersion of various forms of life within a specific area or across the Earth.