The Perfectly Competitive Firm Will Shut Down in the Short

question 43

Multiple Choice

The perfectly competitive firm will shut down in the short run if price is

• A)less than average variable cost.
• B)greater than average variable cost but less than average total cost.
• C)greater than average total cost.
• D)equal to average total cost.

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Definitions:

Market Segment

Refers to the division of the potential market into distinct groups of customers with common needs or characteristics.

Viability

The ability of a business, project, or idea to survive or to sustain itself and achieve long-term success.

Firm's Mission

A statement that defines a company's core purpose, focus, and direction, serving as a guide for its strategies, decisions, and operations.

Evoked Set

The group of brands or products a consumer considers when making a purchase decision.