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Author Question: If the price of its product falls below the minimum point on the AVC curve, the best a perfectly ... (Read 80 times)

mmm

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on: Jun 29, 2018
If the price of its product falls below the minimum point on the AVC curve, the best a perfectly competitive firm can do is to
 
  A) keep producing and incur an economic loss equal to its total variable cost.
  B) keep producing and incur an economic loss equal to its total fixed cost.
  C) shut down and incur an economic loss equal to its total variable cost.
  D) shut down and incur an economic loss equal to its total fixed cost.

Question 2

If marginal revenue equals zero, then demand at this level of output is
 
  A) perfectly inelastic.
  B) inelastic.
  C) unit elastic.
  D) elastic.


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djofnc

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

C


mmm

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Reply 2 on: Jun 29, 2018
:D TYSM

epscape

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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