If the Price Is Consistently Below the Average Variable Cost

question 159

Essay

If the price is consistently below the average variable cost, then in the short run a perfectly competitive firm should:
A.raise price.
B.sell more output.
C.shut down.
D.lower price to sell more.

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Definitions:

Flexible

Capable of being easily modified or adapted to new, different, or changing requirements.

Rigid

Strikingly inflexible or unyielding; not easily bent or changed in shape or structure.

Controlling

Exerting power or influence over something or someone to direct or regulate their actions.

Evaluating

The process of assessing or judging the value, significance, or condition of something based on certain criteria or standards.