A firm will shut down if price is below
A. marginal cost.
B. marginal revenue.
C. average total cost.
D. average variable cost.
D. average variable cost.
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While demand shifts have an effect on equilibrium price and quantity, supply shifts have no such effect.
Answer the following statement true (T) or false (F)
Theoretically, an increase in the real wage
A) increases leisure. B) decreases leisure. C) has an ambiguous effect on leisure. D) has no effect on leisure.
When total revenue is less than variable costs, a firm in a competitive market will
a. continue to operate as long as average revenue exceeds marginal cost. b. continue to operate as long as average revenue exceeds average fixed cost. c. shut down. d. raise its price.
Showing up to a job interview and not knowing any information about the company is an example of a:
A. negative screen. B. positive screen. C. positive signal. D. negative signal.