In the Long Run, a Perfectly Competitive Firm Will Exit

question 205

Multiple Choice

In the long run, a perfectly competitive firm will exit a market when

• A) its total revenue is less than its total cost.
• B) its marginal revenue curve is below the minimum of its average total cost curve.
• C) the price is greater than the minimum of its average total cost curve.
• D) Both answers A and B are correct.

---

Definitions:

Easy Puzzles

Simple or solvable problems that require minimal cognitive effort to resolve.

Run Faster

Refers to increasing one's speed while moving on foot, often aimed at improving physical fitness or competing in athletic events.

Social Facilitation

The enhancement of a person's performance when doing simple or well-practised tasks because of the presence of others.

Dominant Response

The most common or likely reaction that a person exhibits in response to a specific situation or stimulus.