A firm will shut down in the short run if a it is suffering a loss fixed costs e

ID: 1099748 • Letter: A

Question

A firm will shut down in the short run if

a it is suffering a loss

fixed costs exceed revenues

c variable costs exced revenues

d total costs exceed revenues

The shut-down point for a perfectly competitive firm is

a the lowest [oint on the ATC curve

b the point at which a firm's long-run supple curve ends

c the lowest poimt on the AVC curve

d the lowest point on the marginal cost curve

3 A firm stands to gain by operating rather than by shutting down as long as

a price is sufficient to cover AFC.

b AFC is greater than AFC

price is sufficient to cover AVC

AVC is greater than MC

A firm will shut down in the short run if

a it is suffering a loss

b fixed costs exceed revenues

c variable costs exced revenues

d total costs exceed revenues

The shut-down point for a perfectly competitive firm is

a the lowest point on the ATC curve

b the point at which a firm's long-run supple curve ends

c the lowest poimt on the AVC curve

d the lowest point on the marginal cost curve

3 A firm stands to gain by operating rather than by shutting down as long as

a price is sufficient to cover AFC.

b AFC is greater than AFC

c price is sufficient to cover AVC

d AVC is greater than MC

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