If, for a Given Output Level, a Perfectly Competitive Firm's

question 153

Multiple Choice

If, for a given output level, a perfectly competitive firm's price is less than its average variable cost, the firm

• A)is earning a profit.
• B)should shut down.
• C)should increase output.
• D)should increase price.

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Definitions:

Ecosystem

A system, or a functioning whole, composed of both the natural environment and all the organisms living within it.

Food-Producing Society

Societies that rely primarily on agriculture and animal husbandry for their sustenance, having transitioned from foraging and hunting-gathering modes of subsistence.

Foraging

The act of searching for and exploiting food resources by animals, including hunting, fishing, and gathering plant materials.

Pastoralism

The breeding and managing of migratory herds of domesticated grazing animals, such as goats, sheep, cattle, llamas, and camels.