Firms should shut down in the short run whenever price is less than the average total cost.
Correct Answer:
Verified
Q15: Whenever marginal revenue is greater than marginal
Q16: The demand curve faced by a perfectly
Q17: Economic profits in a perfectly competitive industry
Q18: If price is less than the average
Q19: In a perfectly competitive market,marginal revenue is
Q21: Marginal revenue for a perfectly competitive firm
Q22: Which of the following is characteristic of
Q23: Which of the following is a characteristic
Q24: A perfectly competitive firm is a:
A) price
Q25: Perfect competition is the term used to
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