Day: June 16, 2022

When will a firm in a perfectly competitive industry cease to produce in the short run?

Select ONE answer:

1. if it earns less than normal profits
2. if total revenue is less than the total cost of production
3. if marginal revenue is less than the average total cost of production
4. if total revenue is less than the total variable cost of production

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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