If, for a Given Output Level, a Perfectly Competitive Firm's

question 153

Multiple Choice

If, for a given output level, a perfectly competitive firm's price is less than its average variable cost, the firm

• A)is earning a profit.
• B)should shut down.
• C)should increase output.
• D)should increase price.

---

Definitions:

Multiple Roles

The concept of engaging in several distinct functions or social positions simultaneously.

Greater Resources

A term that refers to having more wealth, materials, or assets available for use or development.

Extramarital Sex

Sexual activities that occur outside of marriage.

Men and Women

Refers to the adult human male and female demographic categories, respectively.