If the Price Is Consistently Below Average Total Cost, Then

question 319

Essay

If the price is consistently below average total cost, then in the short run a perfectly competitive firm should:
A.shut down.
B.continue to produce to minimize losses.
C.raise price.
D.There is not enough information given to answer this question.

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Definitions:

Sensory Functions

The abilities of the sensory systems to receive and process stimuli from the environment.

Axon

The part of a neuron that transmits impulses to glands, muscles, or other neurons.

Neuron's Nucleus

The central part of a neuron where genetic material is stored and processed.

Axon

A long, slender projection of a nerve cell, or neuron, that typically conducts electrical impulses away from the neuron's cell body.