Firm A operates in perfect competition, and the price the firm faces is greater than its average variable cost and less than its average total costs. If the firm does not expect price to change, firm A should: O a. Shut down in the short run but operate in long run O b. Shut down in short run and in long run Oc. O d. Shut down immediately Operate in short run but shut down in long run 4
Firm A operates in perfect competition, and the price the firm faces is greater than its average variable cost and less than its average total costs. If the firm does not expect price to change, firm A should: O a. Shut down in the short run but operate in long run O b. Shut down in short run and in long run Oc. O d. Shut down immediately Operate in short run but shut down in long run 4
Chapter12: Firms In Perfectly Competitive Markets
Section: Chapter Questions
Problem 14P
Related questions
Question
![red
1.00
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Firm A operates in perfect competition, and the price the firm faces is greater than its average variable cost and less than its
average total costs. If the firm does not expect price to change, firm A should:
O a Shut down in the short run but operate in long run
O b.
Shut down in short run and in long run
Oc. Operate in short run but shut down in long run
Od. Shut down immediately
Jump to
O a. Increase production/output
Ob. Shut down business
Oc. Decrease production/output
Od. Keep current production level
Under perfect competition, if firm A's marginal revenue is greater than its marginal cost, what should firm A do to maximize its
profit:
AVAAN LUV1000 Evaluations Test 2-July 14th
Which of the below is the difference between economic profit and accounting profit
O a. Opportunity Cost
O b. Revenue difference
Oc: Explicit cost
O d. Fixed cost
Next page
O e. Variable cost
Next Activity
Next Activity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F06a2d20c-22dc-4796-99c4-c99cd35074c0%2Fe07a103e-8521-42d7-b14d-f782e45f0c73%2F1smhh8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:red
1.00
pn
ge
Firm A operates in perfect competition, and the price the firm faces is greater than its average variable cost and less than its
average total costs. If the firm does not expect price to change, firm A should:
O a Shut down in the short run but operate in long run
O b.
Shut down in short run and in long run
Oc. Operate in short run but shut down in long run
Od. Shut down immediately
Jump to
O a. Increase production/output
Ob. Shut down business
Oc. Decrease production/output
Od. Keep current production level
Under perfect competition, if firm A's marginal revenue is greater than its marginal cost, what should firm A do to maximize its
profit:
AVAAN LUV1000 Evaluations Test 2-July 14th
Which of the below is the difference between economic profit and accounting profit
O a. Opportunity Cost
O b. Revenue difference
Oc: Explicit cost
O d. Fixed cost
Next page
O e. Variable cost
Next Activity
Next Activity
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