When a Perfectly Competitive Firm Decides to Shut Down, It

question 292

Multiple Choice

When a perfectly competitive firm decides to shut down, it is most likely that

• A)marginal cost is above average variable cost.
• B)marginal cost is above average total cost.
• C)price is below the firm's average variable cost.
• D)fixed costs exceed variable costs.

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Definitions:

Free Healthcare

A health service model where medical and hospital services are provided to individuals at no direct cost, typically funded by government taxes.

Affordable Care Act

A healthcare reform law enacted in March 2010, aimed at providing more Americans with access to affordable health insurance, improving the quality of healthcare and health insurance, and reducing healthcare spending in the US.

Poverty Level

The minimum level of income deemed necessary to achieve an adequate standard of living in a given country or area, often used to gauge the portion of the population living in poverty.

Decision Making

The cognitive process of selecting a course of action among multiple alternatives.