If the Price Is Consistently Below Average Total Cost, Then

question 84

Multiple Choice

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 the price.
• D) There is not enough information given to answer this question.

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Definitions:

External Stimulation

Involves sensory input from the environment that influences a person's physical or psychological state.

Teratogens

Environmental influences or agents that can damage the embryo or fetus.

Sex Chromosome

A chromosome in the shape of a Y (male) or an X (female) that determines the anatomic sex of the child.

Deoxyribonucleic Acid (DNA)

Genetic material that takes the form of a double helix composed of phosphates, sugars, and bases.