Suppose a Perfectly Competitive Firm Faces the Following Short-Run Cost

question 335

Multiple Choice

Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $6.00; AVC = $4.00; MC = $3.50; MR = $3.50. The firm should

• A) increase output.
• B) increase price.
• C) remain at the same position.
• D) shut down.

---

Definitions:

Isotope

Variants of a particular chemical element which differ in neutron number, and consequently in nucleon number, but share the same number of protons.

Subatomic Particles

Particles that are smaller than an atom, including protons, neutrons, and electrons, which make up the atoms' structure.

Protons

Positively charged particles found in the nucleus of an atom.

Neutrons

Neutral particles within an atom's nucleus, contributing to the atom's mass but not its charge.