QUESTION 23 If a perfectly competitive firm incurs an economic loss, it should: Shut down if this loss exceeds fixed cost. O Shut down in long run. O Shut down immediately. O Try to raise its price.
QUESTION 23 If a perfectly competitive firm incurs an economic loss, it should: Shut down if this loss exceeds fixed cost. O Shut down in long run. O Shut down immediately. O Try to raise its price.
Chapter12: Firms In Perfectly Competitive Markets
Section: Chapter Questions
Problem 13P
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Question
![QUESTION 23
If a perfectly competitive firm incurs an economic loss, it should:
O Shut down if this loss exceeds fixed cost.
O Shut down in long run.
O Shut down immediately.
O Try to raise its price.
QUESTION 24
Suppose a firm is producing a level of output such that MR > MC. What should the firm do to maximize its profits?
O The firm should increase price
O The firm should do nothing if it wants to maximize the difference between MR and MC to maximize its profits.
O The firm should increase output
O The firm should hire less labor
Click Save and Submit to save and submit. Click Save All Answers to save all answers.
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Transcribed Image Text:QUESTION 23
If a perfectly competitive firm incurs an economic loss, it should:
O Shut down if this loss exceeds fixed cost.
O Shut down in long run.
O Shut down immediately.
O Try to raise its price.
QUESTION 24
Suppose a firm is producing a level of output such that MR > MC. What should the firm do to maximize its profits?
O The firm should increase price
O The firm should do nothing if it wants to maximize the difference between MR and MC to maximize its profits.
O The firm should increase output
O The firm should hire less labor
Click Save and Submit to save and submit. Click Save All Answers to save all answers.
DELL
F1
F2
F3
F4
E5
F6
F7
F8
F9
F10
%23
%
![Question Completion Status:
QUESTION 23
If a perfectly competitive firm incurs an economic loss, it should:
O Shut down if this loss exceeds fixed cost.
O Shut down in long run.
O Shut down immediately.
O Try to raise its price.
QUESTION 24
Suppose a firm is producing a level of output such that MR> MC. What should the firm do to maximize its profits?
O The firm should increase price
O The firm should do nothing if it wants to maximize the difference between MR and MC to maximize its profits.
O The firm should increase output
O The firm should hire less labor
Click Save and Submit to save and submit. Click Save All Answers to save all ansuers.
DELL
F2
F3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F628dd4b7-cfe1-471f-a8f9-32f6e707a087%2F56440036-7006-438d-87b0-a59ce707d112%2Fs4qmy5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question Completion Status:
QUESTION 23
If a perfectly competitive firm incurs an economic loss, it should:
O Shut down if this loss exceeds fixed cost.
O Shut down in long run.
O Shut down immediately.
O Try to raise its price.
QUESTION 24
Suppose a firm is producing a level of output such that MR> MC. What should the firm do to maximize its profits?
O The firm should increase price
O The firm should do nothing if it wants to maximize the difference between MR and MC to maximize its profits.
O The firm should increase output
O The firm should hire less labor
Click Save and Submit to save and submit. Click Save All Answers to save all ansuers.
DELL
F2
F3
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