Figure 9-17 Which of the Following Statements About the Competitive Price-Taker Firm

question 139

Multiple Choice

Figure 9-17
Which of the following statements about the competitive price-taker firm represented in Figure 9-17 is false?

• A) Short-run losses are minimized at output level q* because MR = MC there.
• B) The firm should shut down in the short run.
• C) If the firm shuts down in the short run, it will suffer a loss equal to the amount of its fixed cost.
• D) If the firm operates in the short run, it will suffer a loss greater than the amount of its fixed cost.
• E) If the firm operates in the short run, it will suffer a loss equal to the amount of its fixed cost plus the uncovered portion of its variable cost.

---

Definitions:

Educational Attainment

The highest level of education an individual has completed.

Racial-Ethnic Minorities

Groups of individuals who are identified by distinct physical or cultural traits, and are smaller in number compared to the dominant group in a society.

Inequalities

The unequal distribution or access to resources, opportunities, and rights among different social groups or individuals.

Conflict Theory

A theoretical framework that views society as an arena of inequality that generates conflict and social change, focusing on the struggle between social classes.