Author Question: If the market price in a perfectly competitive market is less than a firm's minimum average variable ... (Read 117 times)

jCorn1234 · **on:** Jun 29, 2018

If the market price in a perfectly competitive market is less than a firm's minimum average variable cost, then the firm's total revenue will always ________.

A) exceed its total fixed cost
B) be less than its total economic loss
C) equal its total cost
D) be less than its total variable cost

Question 2

The figure above shows a monopoly firm's demand curve. If the price and quantity of haircuts move from point t to point r, the monopoly's

A) total revenue will rise.
B) total revenue will fall.
C) total revenue will remain the same.
D) marginal revenue will decrease.