For a perfectly competitive firm, if price is greater than average variable cost at the profit-maximizing (or loss-minimizing) level of output, then it follows that
A) total revenue is greater than total cost.
B) total revenue is greater than total variable cost.
C) the firm will benefit from shutting down in the short run.
D) total revenue is greater than total fixed cost.
Correct Answer:
Verified
Q138: Exhibit 22-8 Q139: Exhibit 22-8 Q140: A perfectly-competitive firm produces 2,000 units of Q141: In long-run competitive equilibrium SRATC = LRATC, Q143: When a perfectly competitive firm incurs losses, Q144: For a perfectly competitive firm, marginal revenue Q145: Equilibrium price is $17 in a perfectly Q147: If, for a perfectly competitive firm, marginal Q148: Ultimately, market supply curves are upward sloping Q155: Equilibrium price is $10 in a perfectly
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