A competitive firm's minimum supply price in the short run is its shutdown price
a. True
b. False
Indicate whether the statement is true or false
True
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In which market structure will a firm choose not to shut down when price is less than average variable cost?
A) perfect competition B) monopoly C) monopolistic competition D) None of the above. All firms will shut down when P < AVC.
GDP has nothing to say about the level of ________________ in society.
a. spending b. inequality c. technology d. consistency
Assume all capital is owned by firms, rather than by households. Under this assumption, capital is paid according to the value of its marginal product
a. only if this income is transmitted to households in the form of interest. b. only if this income is transmitted to households in the form of dividends. c. only if this income is transmitted to households in the form of interest or dividends. d. regardless of whether this income is transmitted to households in the form of interest or dividends or whether it is kept within firms as retained earnings.
Which statement is true given the total cost function: Total cost = 10Q + 5Q2 + 100?
A. Total cost at Q = 4 is 120 B. Average total cost at Q = 10 is 70 C. Total cost at Q = 5 is 175 D. Average fixed cost is zero at Q = 100