Author Question: Even when two goods are perfect substitutes one can sell at a premium over the other depending on ... (Read 36 times)

Ebrown · **on:** Jun 30, 2018

Even when two goods are perfect substitutes one can sell at a premium over the other depending on the tastes and preferences of the consumers.
Indicate whether the statement is true or false

Question 2

A firm should not necessarily shut down if:
a. total revenue is less than total variable cost.
b. firms suffer losses and the price is above variable costs.
c. the demand curve facing the firm lies below its average variable cost curve.
d. price is less than average variable cost.
e. firms suffer losses and the price is below variable costs.