red1.00pngeFirm A operates in perfect competition, and the price the firm faces is greater than its average variable cost and less than itsaverage 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 runO b.Shut down in short run and in long runOc. Operate in short run but shut down in long runOd. Shut down immediatelyJump toO a. Increase production/outputOb. Shut down businessOc. Decrease production/outputOd. Keep current production levelUnder perfect competition, if firm A's marginal revenue is greater than its marginal cost, what should firm A do to maximize itsprofit:AVAAN LUV1000 Evaluations Test 2-July 14thWhich of the below is the difference between economic profit and accounting profitO a. Opportunity CostO b. Revenue differenceOc: Explicit costO d. Fixed costNext pageO e. Variable costNext ActivityNext Activity

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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. 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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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