(The Short-Run Firm Supply Curve) Each of the followingsituations could exist for a perfectly competitive firm inthe short run. In each case, indicate whether the firmshould produce in the short run or shut down in the shortrun, or whether additional information is needed to determinewhat it should do in the short run.a. Total cost exceeds total revenue at all output levels.b. Variable cost exceeds total revenue at all output levels.c. Total revenue exceeds fixed cost at all output levels.d. Marginal revenue exceeds marginal cost at the currentoutput level.e. Price exceeds average total cost at all output levels.f. Average variable cost exceeds price at all output levels.g. Average total cost exceeds price at all output levels.

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Productive and Allocative Efficiency Analysis

Productive efficiency, also referred to as production efficiency is a term in economics describing the level at which a company is operating at its maximum capacity. Beyond this point, the entity will be unable to manufacture any additional goods without cutting down another product’s production level. This occurrence is an outcome of production happening alongside a Production Possibility Frontier (PPF).