Answered: If price is consistently below average…

If price is consistently below average variable cost, then in the short run a perfectly competitive firm should: A. raise price. B. sell more output. C. shut down. D. lower price to sell more.

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

If price is consistently below average variable cost, then in the short run a perfectly competitive firm should:

A. raise price.
B. sell more output.
C. shut down.
D. lower price to sell more.

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