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

question 104

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.

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Definitions:

Consistently

The quality of always acting or behaving in the same way, showing reliability and uniformity in actions or outcomes over time.

Square Foot

A measurement of area equal to a square that measures one foot on each side.

Hourly Wage

Compensation paid to employees based on the number of hours worked.

Schedule Of Reinforcement

A pattern or timing of delivering rewards or consequences that follows a desired behavior, varying in type such as fixed or variable intervals or ratios.