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:

Neander Valley

A valley in Germany where the first fossils of Neanderthals, an extinct species or subspecies of archaic humans, were discovered in the 19th century.

Prehensile Tail

A tail adapted for grasping or holding objects, found in some species of mammals, notably some monkeys.

Primate Suborder

A subdivision within the order Primates, which includes humans, apes, monkeys, and prosimians.

Prosimi

Commonly refers to a group of primates that includes lemurs, lorises, and tarsiers, often characterized by their more primitive features.