A Purely Competitive Seller Should Produce (Rather Than Shut Down)in

question 125

Multiple Choice

A purely competitive seller should produce (rather than shut down) in the short run

• A)only if total revenue exceeds total cost.
• B)only if total cost exceeds total revenue.
• C)if total revenue exceeds total cost or if total cost exceeds total revenue by some amount less than total fixed cost.
• D)if total cost exceeds total revenue by some amount greater than total fixed cost.

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Definitions:

Money

The set of assets in an economy that people regularly use to buy goods and services from other people.

Wealth

The accumulation of valuable economic resources and assets, including property, investments, and cash, that an individual or entity possesses.

Roundabout Trade

Trade involving multiple countries where goods are exported to one country before being re-exported to the final destination.

Double-Coincidence

The situation in a barter economy where two parties each hold an item the other wants, enabling an exact exchange without the need for a medium of exchange.