Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive. In the short run, firms in this market will shut down if the market price is:
A)greater than $10.
B)less than $15.
C)less than $10.
D)less than $5.

Question

Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.  In the short run, firms in this market will shut down if the market price is:
A)greater than $10. 
B)less than $15. 
C)less than $10. 
D)less than $5.

Quizplus · Accepted Answer

The Answer of Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.  In the short run, firms in this market will shut down if the market price is:
A)greater than $10. 
B)less than $15. 
C)less than $10. 
D)less than $5.

Assume That All Firms in This Industry Have Identical Cost