A firm can minimize its losses by shutting down whenare less thancosts.O a. variable costs; fixedO b. fixed costs; variableO c. revenues; variableO d. operating profits; sunkA firm in a perfectly competitive market has no control over price becauseO a. the government imposes price ceilings on the products produced in perfectly competitive industries.Ob. the market demand for products produced in perfectly competitive industries is perfectly elastic.O c. every firm's product is a perfect substitute for every other firm's product.O d. there is free entry and exit from the industry.A firm is experiencingon the upward-sloping portion of a firm's long run average cost curve.O a. increasing returns to scaleO b. decreasing returns to scaleconstant returns to scaleO d. diminishing marginal returnsA firm willat the output where marginal cost increasesO a.begin to experience diminishing returnsO b. become profitableO c. begin to experience increasing returnsOd.start to experience losses

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A firm can minimize its losses by shutting down when are less than costs. O a. variable costs; fixed O b. fixed costs; variable O c. revenues; variable O d. operating profits; sunk

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A firm can minimize its losses by shutting down when
are less than
costs.
O a. variable costs; fixed
O b. fixed costs; variable
O c. revenues; variable
O d. operating profits; sunk
A firm in a perfectly competitive market has no control over price because
O a. the government imposes price ceilings on the products produced in perfectly competitive industries.
Ob. the market demand for products produced in perfectly competitive industries is perfectly elastic.
O c. every firm's product is a perfect substitute for every other firm's product.
O d. there is free entry and exit from the industry.
A firm is experiencing
on the upward-sloping portion of a firm's long run average cost curve.
O a. increasing returns to scale
O b. decreasing returns to scale
constant returns to scale
O d. diminishing marginal returns
A firm will
at the output where marginal cost increases
O a.
begin to experience diminishing returns
O b. become profitable
O c. begin to experience increasing returns
Od.
start to experience losses

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