In the Short Run, a Perfectly Competitive Firm Will Always

question 144

Multiple Choice

In the short run, a perfectly competitive firm will always shut down if, at all positive output levels, total revenue is

• A)less than total cost
• B)less than total cost but greater than variable cost
• C)less than total cost but greater than fixed cost
• D)greater than fixed cost
• E)less than variable cost

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Definitions:

Government Deficit

A scenario in which a government spends more than it earns over a certain timeframe, usually resulting in the need to borrow funds.

Government Budget Deficit

A financial situation where a government's expenditures exceed its revenues in a given fiscal period, leading to borrowing or debt accumulation.

Political Reforms

Changes introduced to the political system of a country or region aimed at improving governance, enhancing democracy, and addressing flaws in the existing structure.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual rate.