A perfectly competitive firm shuts down in the short-run when the ...

[Tazate]

A perfectly competitive firm shuts down in the short-run when the market price is less than the average variable cost.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Under which of the following circumstances might a gallon of water be more valuable than a flawless one carat diamond?
 a. At a diamond shop next door to a clean public drinking fountain.
 b. At a diamond shop next door to a typical grocery store selling bottled water.
 c. In any U.S. city with safe, clean drinking water.
 d. In a life raft with 8 passengers who have been adrift on a remote part of the Pacific Ocean for a week with few prospects of an immediate rescue.

[Melissahxx]

Answer to Question 1

True

Answer to Question 2

d

[Tazate]

Excellent

[bdobbins]

TYSM