Question

A perfectly competitive firm will shut down in the short run when marginal revenue equals marginal cost at a price less than minimum average variable cost.

True

False
GPT 3.5
False. A perfectly competitive firm will shut down in the short run when marginal revenue equals marginal cost at a price less than minimum average variable cost.

Related Questions

For the following characteristic say whether it describes a perfectly competitive firm, a monopolist... In long-run equilibrium, the perfectly competitive firm's price is equal to which of the following:... The graph on the left shows the short-run marginal cost curve for a typical firm selling in a perfec... For a perfectly competitive firm, __________. MR = FC / Q marginal revenue is equal to approxi...