In a perfectly competitive market, firms are not restricted from ...

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In a perfectly competitive market, firms are not restricted from entering or leaving an industry in response to profits or losses.
  Indicate whether the statement is true or false

Question 2

For a perfectly competitive firm, in the short run, which of the following statements is true?
 a. A price above minimum average variable cost, but below average total cost will produce an economic profit.
  b. A price below minimum average variable cost will cause the firm to shut down.
  c. Marginal cost is parallel to the axis showing quantity of output.
  d. Price is always greater than marginal revenue.
  e. Every firm contributes a significant amount to the total market output.

[ong527]

Answer to Question 1

T

Answer to Question 2

b

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TYSM

[raenoj]

Thanks for the timely response, appreciate it