Author Question: The price that represents the shutdown point for a perfectly competitive firm is the a. highest ... (Read 73 times)

kaid0807 · **on:** Jun 30, 2018

The price that represents the shutdown point for a perfectly competitive firm is the
a. highest point on the marginal cost curve
b. lowest point on the marginal cost curve
c. highest point on the average variable cost curve
d. lowest point on the average variable cost curve
e. lowest point on the average total cost curve

Question 2

Firms can earn economic profits even in the long run if
a. they charge the highest price possible
b. there is a cost-reducing technological change
c. there are significant barriers to entry
d. marginal revenue equals marginal cost
e. price is less than average variable cost at all rates of output