This topic contains a solution. Click here to go to the answer

Author Question: If the price of its product falls below the minimum point on the AVC curve, the best a perfectly ... (Read 78 times)

mmm

  • Hero Member
  • *****
  • Posts: 558
If the price of its product falls below the minimum point on the AVC curve, the best a perfectly competitive firm can do is to
 
  A) keep producing and incur an economic loss equal to its total variable cost.
  B) keep producing and incur an economic loss equal to its total fixed cost.
  C) shut down and incur an economic loss equal to its total variable cost.
  D) shut down and incur an economic loss equal to its total fixed cost.

Question 2

If marginal revenue equals zero, then demand at this level of output is
 
  A) perfectly inelastic.
  B) inelastic.
  C) unit elastic.
  D) elastic.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

djofnc

  • Sr. Member
  • ****
  • Posts: 318
Answer to Question 1

D

Answer to Question 2

C




mmm

  • Member
  • Posts: 558
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it


connor417

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Excellent

 

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

For a complete list of videos, visit our video library