If the Market Price of a Perfectly Competitive Firm's Product

question 67

Multiple Choice

If the market price of a perfectly competitive firm's product is below its average variable cost, then the firm's

• A) marginal revenue is zero.
• B) total revenue is as large as possible.
• C) total revenue if it stayed open would be less than its total variable costs.
• D) total revenue if it stayed open is less than its total cost but greater than its total fixed costs.

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Definitions:

Federal Unemployment Compensation Taxes

Taxes paid by employers to fund the federal unemployment benefits and administrative costs of state unemployment insurance programs.

Unemployed

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These are initiatives or services provided by state governments to support the welfare, education, health, or infrastructure needs of their residents.

Form W-2

Form W-2 is a tax form used in the United States to report wages paid to employees and the taxes withheld from them, crucial for income tax filing purposes.