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The Figure Given Below Shows the Revenue and Cost Curves

Question 50

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The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.2
The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.2    MC: Marginal cost curve MR: Marginal revenue curve ATC: Average-total-cost curve AVC: Average-variable-cost curve -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. MC: Marginal cost curve
MR: Marginal revenue curve
ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-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.

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