The analysis of the production decision suggests that a profit-maximising firm should shut down production in the short run if: A total revenue is less than total cost at the profit-maximising output rate all the answers to this question are correct C price is less than minimum average variable cost at the profit-maximising output rate D I do not want to answer this question. E average revenue is less than average total cost at the profit-maximising output rate F price is less than average total cost at the profit-maximising output rate
The analysis of the production decision suggests that a profit-maximising firm should shut down production in the short run if: A total revenue is less than total cost at the profit-maximising output rate all the answers to this question are correct C price is less than minimum average variable cost at the profit-maximising output rate D I do not want to answer this question. E average revenue is less than average total cost at the profit-maximising output rate F price is less than average total cost at the profit-maximising output rate
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 41P: A computer company produces affordable, easy-to-use home computer systems and has fixed costs of...
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![MCQ 29
The analysis of the production decision suggests that a profit-maximising firm should shut down production in the short run if:
A total revenue is less than total cost at the profit-maximising output rate
all the answers to this question are correct
C
price is less than minimum average variable cost at the profit-maximising output rate
D
I do not want to answer this question.
E
average revenue is less than average total cost at the profit-maximising output rate
F
price is less than average total cost at the profit-maximising output rate](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F22560b7c-f11c-477e-988f-6d62698cc513%2F595199de-6fc9-466e-baf8-c2856ab8cf21%2F2j604jp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:MCQ 29
The analysis of the production decision suggests that a profit-maximising firm should shut down production in the short run if:
A total revenue is less than total cost at the profit-maximising output rate
all the answers to this question are correct
C
price is less than minimum average variable cost at the profit-maximising output rate
D
I do not want to answer this question.
E
average revenue is less than average total cost at the profit-maximising output rate
F
price is less than average total cost at the profit-maximising output rate
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