Author Question: For a perfectly competitive firm, the shutdown point is the A) amount of output at which price ... (Read 60 times)

luvbio · **on:** Jun 29, 2018

For a perfectly competitive firm, the shutdown point is the

A) amount of output at which price equals minimum average variable cost.
B) amount of output at which price equals minimum average total cost.
C) price at which economic profit is zero.
D) price at which total opportunity cost is zero.

Question 2

If the price elasticity of demand is greater than 1, a monopoly's

A) total revenue increases when the firm lowers its price.
B) total revenue decreases when the firm lowers its price.
C) marginal revenue is negative.
D) marginal revenue is zero.