The price-taker firm should discontinue production immediately if:
a. the market price exceeds the firm's average total costs.
b. the market price is less than the firm's average variable costs.
c. the market price is less than the firm's average total costs, but greater than its average variable cost.
d. its accounting statement indicates that it is suffering losses.
b
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An exchange rate that is set by official government policy is called a ________ exchange rate.
A. nominal B. fixed C. real D. flexible
When the price level increases, total planned real expenditures on goods and services falls. All of the following are responsible EXCEPT
A) the interest rate effect. B) the real-balance effect. C) the substitution effect. D) the open economy effect.
Given the information in Scenario 4.3, determine I
A) 0 B) 14 C) 24 D) 36 E) 48
There would be some control over price within rather narrow limits in which market model?
A. Pure competition B. Monopolistic competition C. Oligopoly D. Pure monopoly