Under Which of the Following Conditions Will a Profit-Maximizing Perfectly

question 180

Multiple Choice

Under which of the following conditions will a profit-maximizing perfectly competitive firm shut down in the short run?

• A) when it is making a normal profit
• B) whenever its marginal cost is less than its marginal revenue
• C) when the price is less than its minimum average variable cost
• D) whenever its total cost is greater than its total revenue
• E) when the price is less than its minimum average total cost

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Definitions:

Common Purpose

A shared vision or goal that unites members of a group, team, or community, driving collaborative efforts towards achieving that goal.

Organization

A systematic arrangement of people and resources working together to achieve specific goals.

Collection of People

An assembly or group of individuals brought together for a common purpose or function.

Organizational Strength

The unique capabilities and resources that give an organization a competitive advantage or make it effective in achieving its goals.