Author Question: If market price is greater than the minimum of AVC but below the minimum of AC, then A) the firm ... (Read 88 times)

luvbio · **on:** Jul 1, 2018

If market price is greater than the minimum of AVC but below the minimum of AC, then

A) the firm will shut down.
B) revenue covers variable costs and some of the fixed costs and profit is positive.
C) revenue covers variable costs and some of the fixed costs, although profit is negative.
D) economic profit is zero.

Question 2

Competition can be beneficial in the public sector because _____.

a. it leads to governments going out of business
b. comparison gives some clue as to whether a government is operating efficiently
c. it eliminates a prisoners' dilemma problem
d. a and c