In the Short Run, a Purely Competitive Seller Will Shut

question 70

Multiple Choice

In the short run, a purely competitive seller will shut down if

• A) it cannot produce at an economic profit.
• B) price is less than average variable cost at all outputs.
• C) price is less than average fixed cost at all outputs.
• D) there is no point at which marginal revenue and marginal cost are equal.

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Definitions:

Standard Error

An estimate of the standard deviation of a sampling distribution, often used in inferential statistics.

Regression Line

A straight line that describes how a dependent variable y changes as an independent variable x changes.

Error of Estimate

A measure of the deviation of observed values from the values predicted by a regression line, indicating the accuracy of predictions.

Data Point

An observation.