Each of the following situation could exist for a perfectly competitive firm in

Question

Each of the following situation could exist for a perfectly competitive firm in the short run. In each case, indicate whether the firm should produce in the short-run or shut down in the short run , or whether additional information is needed to determine what it should do in the short-run
a.) Total cost exceeds total revenue at all output levels
b.) Total variable cost exceeds total revenue at all output levels
c.) Total revenue exceeds total fixed cost at all output levels
d.) Marginal revenue exceeds marginal cost at the current output level
e.) Price exceeds average total cost at all output levels
f.) Average variable cost exceeds price at all output levels
g.) Average total cost exceeds price at all output levels

Explanation / Answer

a)continue b)stop c)continue d)continue e)continue f)stop g)stop

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