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 81 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
:D TYSM


alexanderhamilton

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

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

For a complete list of videos, visit our video library