Refer to the graph shown. Suppose the market price is $4. At this price, a perfectly competitive firm should:
A. shut down in the short run but continue production in the long run.
B. continue to produce in the short run but shut down in the long run.
C. continue to produce in both the short run and the long run.
D. shut down immediately.
Answer: B
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Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below. Acme Manufacturing: TC = 100 + 3Q. Generic Industries: TC = 500 + 3Q. Which of the following statements is true?
A. Marginal cost at each firm depends on the level of output. B. Acme and Generic have the same marginal cost. C. Acme has greater economies of scale than does Generic. D. Acme has a lower marginal cost than does Generic.
Which of the following is TRUE?
A) Russia is more dependent of international trade than Brazil. B) Exports and imports are rising more slowly than GDP in the BRIC countries. C) China was the last of the BRICs to start economic reforms. D) All of the BRIC countries had to transition from socialist or communist systems.
Antitrust laws allow the government to
a. collect revenues through the antitrust tax. b. break up companies. c. purchase privately-held companies through eminent domain. d. All of the above are correct.
How big is the labor force? # of employment 800 # of unemployment 200 Not in labor force
A. 250 B. 800 C. 1000 D. 1050 E. 850