Which of the following does not characterize a perfectly ...

[misspop]

Which of the following does not characterize a perfectly competitive firm that has shut down in the short run?
 a. total revenue equals zero
  b. variable costs equal zero
  c. the firm suffers a loss
  d. fixed cost is positive
  e. fixed cost is zero

Question 2

Irving R. Associates is granted a patent for a new product for which there are no close substitutes. Which of the following must be true at the profit-maximizing quantity?
 a. Price is equal to marginal cost.
  b. Average revenue is equal to marginal cost.
  c. Marginal revenue is positive.
  d. Marginal revenue is less than marginal cost.
  e. Price is greater than average revenue.

[jackie]

Answer to Question 1

E

Answer to Question 2

C