1. For perfect competition, if P> min ATC, it means a. The firm breaks even
c. The firm is profitable
b. The firm incurs loss
d. The firm will exit the industry
2. In perfect competition market, in the short run, the firm decides to shut down if.
a. TR c. P b. TR/Q d. All of the above
3. In perfect competition, in the long run, the firm exits from the market if
a. TR c. P b. TR/Q d. All of the above

Cost and benefit in economic example

What effect did increased automobile production have on other industries

Cooperation among oligopolies runs counter to the public interest because it leads to underproduction and high prices. in an effort to bring resource allocation closer to the social optimum, public officials attempt to force oligopolies to compete instead of cooperating. consider the following scenario: suppose that the presidents of two auto manufacturing companies exchange text messages in which they discuss jointly raising prices on their new lines of hybrid suvs. this illegal communication would violate which of the following laws? the sherman antitrust act of 1890 the robinson–patman act of 1936 the celler–kefauver act of 1950 the clayton act of 1914