QUESTION 3 A firm in a perfectly competitive industry will maximize profits by shutting down if the following are true: (Select all that are true) O Total Revenue < Variable Costs Producer surplus is positive O Total Revenue > Producer Surplus Loss from production of Q* >Fixed Costs Loss from production of Q*< Fixed Costs Price > Average variable cost Price < Average variable cost O O O O O
QUESTION 3 A firm in a perfectly competitive industry will maximize profits by shutting down if the following are true: (Select all that are true) O Total Revenue < Variable Costs Producer surplus is positive O Total Revenue > Producer Surplus Loss from production of Q* >Fixed Costs Loss from production of Q*< Fixed Costs Price > Average variable cost Price < Average variable cost O O O O O
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:QUESTION 3
A firm in a perfectly competitive industry will maximize profits by shutting down if the following are true: (Select all that are true)
Total Revenue < Variable Costs
Producer surplus is positive
Total Revenue > Producer Surplus
Loss from production of Q* >Fixed Costs
Loss from production of Q*< Fixed Costs
Price > Average variable cost
Price < Average variable cost
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