A perfectly competitive firm will remain open in the short run while sustaining losses if O A. pure economic profit is negative. B. the average variable cost exceeds the price. OC. marginal revenue is below average fixed cost. D. marginal revenue exceeds average variable cost.
A perfectly competitive firm will remain open in the short run while sustaining losses if O A. pure economic profit is negative. B. the average variable cost exceeds the price. OC. marginal revenue is below average fixed cost. D. marginal revenue exceeds average variable cost.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A perfectly competitive firm will remain open in the short run while sustaining losses if
A. pure economic profit is negative.
B. the average variable cost exceeds the price.
OC. marginal revenue is below average fixed cost.
D. marginal revenue exceeds average variable cost.
QUESTION 11
Refer to Figure 5. Which panel(s) best represent(s) a binding rent control in the long run?
Price
Panel (a)
Supply
A. panel (a)
B. panel (b)
C. both panels
D. neither panel
Rent Control
Demand
Quantity
Price
Panel (b)
Supply
Rent Control
Demand
Quantity
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