Which of the following is true?
A.If the price falls below the average total cost, the firm will shut down in the short run.
B.Price and marginal revenue are the same in perfect competition.
C.Economic profit per unit is found by subtracting AVC from the price.
D.Economic profit is always positive in the short run.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q107: A perfectly competitive firm will incur an
Q112: If the price is less than the
Q115: Figure: Cost Curves for Corn Producers
Q116: Figure: Cost Curves for Corn Producers
Q118: Figure: Prices, Cost Curves, and Profits
(Figure: Prices,
Q119: Figure: Cost Curves for Corn Producers
Q120: Wenqin is a farmer, and in the
Q121: Figure: The Marginal Decision Rule
Q122: Figure: Revenues, Costs, and Profits III for
Q160: A perfectly competitive firm's marginal cost curve
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents