In the Long Run, a Perfectly Competitive Firm Will Exit

question 205

Multiple Choice

In the long run, a perfectly competitive firm will exit a market when

• A) its total revenue is less than its total cost.
• B) its marginal revenue curve is below the minimum of its average total cost curve.
• C) the price is greater than the minimum of its average total cost curve.
• D) Both answers A and B are correct.

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Definitions:

Practical Intelligence

The ability to solve everyday problems by utilizing knowledge gained from experience in order to effectively deal with challenges and adapt to one's environment.

Spatial Intelligence

is the ability to comprehend and organize spatial relationships, enabling individuals to visualize and manipulate objects and their arrangements in space.

Naturalist Intelligence

A type of intelligence that involves skill in understanding and interacting effectively with the natural environment.

Semanticity

The characteristic of language that allows it to convey meaning through words and symbols.