In the Long Run,perfectly Competitive Firms Will Exit the Market

question 184

Multiple Choice

In the long run,perfectly competitive firms will exit the market if the price is

• A) higher than average variable cost.
• B) equal to average total cost.
• C) less than average total cost.
• D) equal to average fixed cost.
• E) equal to marginal revenue.

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Definitions:

Corporate Income Taxes

Taxes levied on the net income (profit) of corporations by the government.

Federal Tax Revenues

Federal tax revenues are the funds collected by the government from taxes, including income taxes, corporate taxes, and other levies, used to fund public services and government operations.

Personal Income Taxes

Taxes imposed by governments on individual earnings, such as wages, salaries, and other forms of income, with rates that typically vary according to income levels.

Tax Structure

The system or arrangement of various types of taxes imposed by a government, including their rates, bases, and method of collection.