In the Short Run, a Perfectly Competitive Firm Will Always

question 141

Multiple Choice

In the short run, a perfectly competitive firm will always shut down if total revenue is ____ at all positive output levels.

• A) less than total cost
• B) less than total cost but greater than variable cost
• C) less than total cost but greater than fixed cost
• D) greater than fixed cost
• E) less than variable cost

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Definitions:

Type II Error

The error that occurs when the null hypothesis is not rejected when it is actually false, referring to a missed detection of an effect.

Hypothesis Test

A statistical method used to determine if there is enough evidence to reject a null hypothesis in favor of an alternative hypothesis, based on sample data.

Average Final Exam Score

The mean score obtained by averaging the final exam scores of all students in a course or subject.

P-value

A statistical measure that helps researchers determine the significance of their research results.