The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-A firm should not necessarily shut down if:
A) total revenue is less than total variable cost.
B) firms suffer losses and the price is above variable costs.
C) the demand curve facing the firm lies below its average variable cost curve.
D) price is less than average variable cost.
E) firms suffer losses and the price is below variable costs.
Correct Answer:
Verified
Q62: The figure given below shows the revenue
Q63: The figure given below shows the revenue
Q64: The figure given below shows the revenue
Q65: The figure given below shows the demand
Q66: The figure given below shows the demand
Q68: The figure given below shows the revenue
Q69: The figure given below shows the demand
Q70: The figure given below shows the demand
Q71: The figure given below shows the revenue
Q72: The figure given below shows the revenue
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