Author Question: In the short run, a perfectly competitive firm suffering a loss a. will close if P < AVC b. ... (Read 63 times)

sam.t96 · **on:** Jun 30, 2018

In the short run, a perfectly competitive firm suffering a loss
a. will close if P < AVC
b. will shut down operations if P < MC
c. cannot leave the industry even if P < AVC
d. can sell off all its resources to competitors
e. can raise the price to increase revenues

Question 2

For a nondiscriminating monopolist, which of the following statements is true?
a. Unlike a firm in perfect competition, a monopolist produces where MR > MC.
b. The monopolist's marginal revenue curve is the same as its demand curve.
c. The monopolist will always produce in the inelastic range of its demand curve.
d. The monopolist does not have a supply curve.
e. The monopolist produces where MR < MC.