If a Perfectly Competitive Firm's Total Revenue Is Less Than

question 214

Multiple Choice

If a perfectly competitive firm's total revenue is less than its total variable cost, the firm

• A)should raise its price above its average variable cost.
• B)should continue to produce and increase its demand.
• C)should stop production by shutting down temporarily.
• D)should adopt new technology in order to lower its costs of production.

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Definitions:

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Love Withdrawal

A form of psychological punishment where love, support, or approval is withheld to control or influence behavior.

Inductive Technique

A reasoning approach that moves from specific instances to a generalized conclusion or theory.

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A psychological dimension characterizing interpersonal relationships or personality traits, ranging from warmth (friendly, compassionate) to coldness (unfriendly, indifferent).