In order to minimize losses in the short run, a perfectly competitive firm should shut down if
A. total revenue is less than total cost.
B. total revenue is less than the difference between total fixed cost and total variable cost.
C. total revenue is less than total variable cost.
D. total revenue is less than total fixed cost.
Answer: C
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A private subsidy has what effect on the amount of a good or service produced? Is a private subsidy an appropriate policy to offset the inefficiency from an external cost or an external benefit?
What will be an ideal response?
If the expected inflation rate was 2.5%, the expected real interest rate was 4.0%, and the real interest rate turned out to be 5.1%, then the nominal interest rate equals
A) 1.4%. B) 1.5%. C) 2.6%. D) 6.5%.
When the value of money is on the vertical axis, an increase in the price level shifts money demand to the right
a. True b. False Indicate whether the statement is true or false
Assuming everything else stays the same, an increase in the price of smartphones will __________ of smartphones.
a) increase the supply b) increase the quantity supplied c) decrease the quantity supplied d) decrease the supply