A perfectly competitive firm decides to shut down if:
a. the price falls below the average-total-cost.
b. average revenue falls below the average-variable-cost.
c. the price falls below the marginal cost.
d. the average revenue curve lies below the marginal cost curve.
e. the total revenue is less than total cost.
b
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The sum of the current account, the financial account, and the capital account is ________.
A. 100 B. zero C. the trade deficit D. the reserve balance
Refer to the scenario above. Which of the following would have happened if the government had decided to provide an export subsidy on these cash crops?
A) The volume of exports would have decreased. B) The government's revenue would have increased. C) Domestic producers would have been better off. D) Domestic consumers would have been worse off.
Which of the following is true at the output level where average total cost is at its minimum?
A) Marginal cost equals average total cost. B) Average variable cost equals fixed cost. C) Marginal cost equals average variable cost. D) Average total cost equals average fixed cost.
Which statement best characterizes the long-run decline in the agricultural industry?
A. The growth in the demand for farm products has exceeded the growth in the supply of such products, causing rising farm product prices and falling farm income B. The growth in the supply of farm products has exceeded the growth in the demand for such products, causing falling farm product prices and falling farm income C. The supply of farm products has increased while the demand for such products has decreased, causing falling farm product prices and falling farm income D. The demand for farm products has increased while the supply of such products has decreased, causing rising farm product prices and rising farm income