Author Question: If a perfectly competitive firm operates in the short run and expands in the long run, then the ... (Read 23 times)

OSWALD · **on:** Apr 19, 2019

Question 1

If
TR <
TVC, a firm would ________ in the short run and ________ in the long run.

◦ operate; expand
◦ operate; exit the industry
◦ not operate; expand
◦ shut down; exit the industry

Question 2

If a perfectly competitive firm operates in the short run and expands in the long run, then the firm's short run condition is

◦ TR >
TC.
◦ TR >
TVC and
TR <
TC.
◦ TR <
TVC.
◦ TR <
TFC.

zogaridan · **Reply #1 on:** Apr 19, 2019

Answer 1

shut down; exit the industry

Answer 2

TR >
TC.