The owners will shut down a perfectly competitive firm if the price of its good falls below its minimum
A) average total cost.
B) average marginal cost.
C) average variable cost.
D) wage rate.
Question 2
By making most of its employees owners of the company, United Airlines attempted to
A) cope with the unlimited liability problem.
B) change its business organization from a corporation to a partnership.
C) address the principal-agent problem between the workers and managers.
D) increase the role of the command system in managing the firm.
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