32. In the short run a purely competitive seller will close down if: a. It cannot produce at an economic profit b. Price is less than average variable cost at all outputs c. Price is less than average fixed cost at all outputs d. There is no point at which marginal revenue and marginal cost are equal e. Price falls short of average total cost at all possible outputs
32. In the short run a purely competitive seller will close down if: a. It cannot produce at an economic profit b. Price is less than average variable cost at all outputs c. Price is less than average fixed cost at all outputs d. There is no point at which marginal revenue and marginal cost are equal e. Price falls short of average total cost at all possible outputs
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 2.4P
Related questions
Question
100%
32. In the short run a purely competitive seller will close down if:
a. It cannot produce at an economic profit
b. Price is less than average variable cost at all outputs
c. Price is less than average fixed cost at all outputs
d. There is no point at which marginal revenue and marginal cost are equal
e. Price falls short of average total cost at all possible outputs
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax