Which of the Following Is True

question 127

Multiple Choice

Which of the following is true?

• A) If price falls below average total cost the firm will shut down in the short run.
• B) Price and marginal revenue are the same in perfect competition.
• C) Economic profit per unit is found by subtracting AVC from price.
• D) Economic profit is always positive in the short run.

---

Definitions:

Mid-19th Century

The period approximately between 1830 to 1870, marked by significant industrial, social, and political changes in many parts of the world.

American Culture

Refers to the set of customs, traditions, and values of the people living in the United States.

European Influence

Refers to the impact and effect European cultures, policies, and economics have had on other regions worldwide, shaping global history, colonization, and international relations.

American Colonization Society

A group established in the early 19th century advocating for the relocation of free African Americans to what is now Liberia.