A Perfectly Competitive Firm Will Not Produce Any Output in the Short

question 333

Multiple Choice

A perfectly competitive firm will not produce any output in the short run and will shut down if the price is:

• A)greater than marginal cost.
• B)less than marginal cost.
• C)less than average variable cost.
• D)greater than average variable cost and less than average total cost.

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Definitions:

Psychological Reactance

A behavioral response to restrictions on personal freedoms, often resulting in a desire to reclaim or reassert those freedoms.

Providing Alternatives

Offering different options or choices as solutions to a particular problem or issue.

Limiting Freedom

The act of restricting individual choices, actions, or liberty.

Buffer

A protective barrier or cushion that reduces the impact of a negative outcome or message.