Author Question: In the long run, producers do not incur any fixed cost as all inputs are variable. Indicate ... (Read 108 times)

D2AR0N · **on:** Jun 30, 2018

In the long run, producers do not incur any fixed cost as all inputs are variable.
Indicate whether the statement is true or false

Question 2

Since the beginning of the millennium, the United States has witnessed closure of many Internet start-up companies. According to the model of perfect competition, these companies must have shut down in the short run because:
a. the price they were charging was too high to attract customers.
b. the price they were charging was too low to provide sufficient revenues.
c. they were not earning enough revenue to cover their total costs.
d. they were not earning enough revenue to cover their total variable costs.
e. they were not earning enough revenue to cover their total fixed costs.