The Pastoral Care Department 2a4 Name Microeconomics 2620 Fall 2017 Third Exam 2

Question

The Pastoral Care Department 2a4 Name Microeconomics 2620 Fall 2017 Third Exam 29) Ben's Peanut Shoppe saffers a shoorn-run loss. Ben will sot choose to shvot down it A) his Shoppe's total revenue exceeds his fixed cost B) his Shoppe's total revenue exceeds his variable cost. C) his Shoppe's toial revenue exceeds his implicit costs D) his Shoppe's total revenue exceeds his capinnl costs 30) Which of the following is not an option for a perfectly competistive firm tht sufters shont-run losses? A) shutting down B) reducing production C) reducing the use of variable factors D) raising price

Explanation / Answer

Answer:- Ben's peanut shoppe suffers a short-run loss, Ben will not choose to shut down if

Correct Answer;- His shopee's total revenue exceeds his variable costs

Reason:- In the short run, a firm will continue to produce until it can recover its total variable costs.

Answer:- which of the following is not an option for a perfectly competitive firm that suffers short-run losses

Correct Answer:- Raising price

Reason:- By raising price, the demand may go down.

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