Author Question: A perfectly competitive firm shuts down in the short-run when the market price is less than the ... (Read 14 times)

Tazate · **on:** Jun 30, 2018

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.