If, for a Given Output Level, a Perfectly Competitive Firm's

question 212

Multiple Choice

If, for a given output level, a perfectly competitive firm's price is less than its average variable cost, then the firm

• A)is earning a profit.
• B)should shut down.
• C)should increase output.
• D)should increase price.

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Definitions:

Teratogens

Environmental substances that can harm prenatal development.

Folic Acid

A type of B vitamin that is crucial in the production and repair of DNA and other genetic material, and is especially important in prenatal development.

Caffeine

A natural stimulant found in coffee, tea, and certain plants, enhancing alertness and energy levels.

Measles

A highly contagious viral disease characterized by a red rash and fever, which can be prevented through vaccination.