The shutdown point for a perfectly competitive firm is the
A. lowest point on the marginal cost curve.
B. lowest point on the AVC curve.
C. point at which a firm's long-run supply curve ends.
D. lowest point on the ATC curve.
Answer: B
You might also like to view...
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Consider a good that you do not like at all, perhaps turnips. Given the market price for turnips, what would be your consumer surplus?
What will be an ideal response?
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. The slope of Country A's production possibilities frontier:
A. measures the opportunity cost of trucks in terms of cars.
B. measures the trade-off that Country A face when deciding how to allocate resources.
C. is constant because the opportunity cost remains constant.
D. All of these statements are true.
The basic purpose of antitrust laws is to:
A. Provide subsidies for American business B. Limit monopoly power in industry C. Control prices to protect consumers D. Enforce laws that restrict competition