A perfectly competitive firm should reduce output or shut down in the short run if market price is equal to marginal cost and price is:

Related MCQs

• In the short run, a monopolist will shut down if it is producing a level of output where marginal revenue is equal to short-run marginal cost and price is:
• The market demand curve for a perfectly competitive industry is QD = 12 - 2P. The market supply curve is QS = 3 + P. The market will be in equilibrium if:
• The best or optimum level of output for a perfectly competitive firm is given by the point:
• The cost per output is given by C = 2x + 27. Then the marginal cost when x = 5 is:
• A profit-maximizing monopoly firm with a demand curve P = 50 − Q is a perfect pricediscriminator. If it has marginal costs of Rs. 10/unit and fixed costs of Rs. 30, it will produce _____ units of output and will make______ profit.
• If the demand facing a monopolist is P = 100 − 10Q and marginal cost is constant at 20, then the profit maximizing price and quantity for this monopolist are:
• In input-output analysis,____ shows the number of units of any industry’s output needed to produce one unit of another industry’s output.
• If the demand curve for a monopolist is P = 100 -20Q, then the marginal revenue of that firm is given by the equation:
• The slope of ___curve will be positive if and only if the marginal cost curve lies above the AC curve.
• At a price of Rs11.00, quantity demanded is 90; and at a price of Rs.9.00, quantity demanded is 110. The price elasticity of demand is: