In the Short Run, a Perfectly Competitive Firm Will Always

question 160

Multiple Choice

In the short run, a perfectly competitive firm will always shut down if, at all output levels above zero,

• A)price is less than average total cost
• B)total revenue is less than total cost
• C)they cannot pay variable costs with total revenue
• D)variable cost is greater than fixed cost
• E)price is less than fixed cost

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