-The Figure Above Shows a Perfectly Competitive Firm

question 46

Multiple Choice

-The figure above shows a perfectly competitive firm. In the short run, the firm will shut down

• A) only if the AVC of producing 10 units is less than $20.
• B) only if the AVC of producing 10 units is more than $20.
• C) only if the AVC curve reaches its minimum before 10 units are produced.
• D) always.

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Definitions:

Despotic Governments

Governments characterized by an authoritarian form of rule where a single entity or a small group possess absolute power without effective constitutional limitations.

Natural Right

A philosophy asserting that individuals inherently possess rights that cannot be taken away by government or society, such as life, liberty, and property.

Pursuit of Happiness

Often associated with the US Declaration of Independence, it refers to the right of individuals to seek and attain their own version of happiness.

Property Ownership

The legal right or title to possess, use, and dispose of physical or intellectual property.