The short-run shutdown rule for a competitive firm is to shut down if: (A) P>AVC (B)...

Transcribed Image Text:

The short-run shutdown rule for a competitive firm is to shut down if: (A) P>AVC (B) P<AVC (C) P> ATC (D) P<ATC. The long-run exit rule for a competitive firm is to exit the industry if: (A) P> AVC (B) P<AVC (C) P> ATC (D) P < ATC. 10. Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. What is the marginal product of the fifth worker? (A) 40 (B) 50 Labor 0 1 2 3 4 5 6 7 8 (C) 30 9 10 11 Total Output 0 (D) 200 In the long run, firms will enter a perfectly competitive market or a monopolistic competitive market if the existing firms are making: (A) a profit. (B) negative profits. (C) zero profits. (D) Any of these could be true. 10 50 110 160 200 230 255 275 290 300 305 The short-run shutdown rule for a competitive firm is to shut down if: (A) P>AVC (B) P<AVC (C) P> ATC (D) P<ATC. The long-run exit rule for a competitive firm is to exit the industry if: (A) P> AVC (B) P<AVC (C) P> ATC (D) P < ATC. 10. Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. What is the marginal product of the fifth worker? (A) 40 (B) 50 Labor 0 1 2 3 4 5 6 7 8 (C) 30 9 10 11 Total Output 0 (D) 200 In the long run, firms will enter a perfectly competitive market or a monopolistic competitive market if the existing firms are making: (A) a profit. (B) negative profits. (C) zero profits. (D) Any of these could be true. 10 50 110 160 200 230 255 275 290 300 305

Answer rating: 100% (QA)

Answer 8 The correct option is B If the price is less than the average variable cost then t... View the full answer