UNIT 03 / PRODUCTION, COST, AND THE PERFECT COMPETITION MODEL

Short-Run Production and Long-Run Entry and Exit3.6 test

100 questions with explanations after each answer.

Practice mode

QUESTION 01 / 100Easy

In the short run, a firm should shut down if

Select one answerATotal revenue is less than total costBAverage total cost exceeds average variable costCRevenue is below variable costDEconomic profit is less than accounting profitETotal fixed cost is positive

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1 of 100

A wrong answer is a useful starting point. Read the explanation, then keep going.

Question 1