A firm operating in a perfectly competitive industry will continue to operate in the short run but earn losses if the market price is less than that firm's average variable cost but greater than the firm's average fixed cost
a. True
b. False
Indicate whether the statement is true or false
False
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In the absence of government
A) public goods are likely to be overprovided. B) market failure is less likely to occur. C) public goods are likely to be underprovided. D) the free-rider problem is more likely to occur.
A firm's break-even price is the price that is just equal to the minimum point of the AVC curve, in the short run
a. True b. False Indicate whether the statement is true or false
A decrease in the interest rate shifts the money demand curve to the right
a. True b. False
If an agricultural market is perfectly competitive, then
A. Each firm's demand curve is perfectly inelastic. B. A farmer practices price discrimination. C. The market demand curve is perfectly elastic. D. A farmer is a price taker.