11. Perfect Competition
Short Run Shutdown Decision
Multiple Choice
Multiple ChoiceThe price for a pair of edible underpants is $50. In the short-run, the firm should:
A
Shut down because price is less than average total cost.
B
Shut down because it cannot make a profit.
C
Produce one unit because, at this output, marginal revenue equals marginal cost.
D
Produce four units because, at this output, the loss is minimized.
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