1. In the short run, a perfectly competitive firm produces output and breaks even if the firm produces the quantity at which:
1. P < MC
2. P = MC
3. P = ATC
4. P > ATC
1. What is the most likely ordering of elasticities (from highest to lowest)?
a. Decathlon t-shirts, Nike shoes, Louis Vuitton handbags, Zara socks
b. Zara socks, Nike shoes, Decathlon t-shirts, Louis Vuitton handbags
c. Nike shoes, Decathlon t-shirts, Zara socks, Louis Vuitton handbags
d. Decathlon t-shirts, Zara socks, Nike shoes, Louis Vuitton handbags
1. The demand curve for a perfectly competitive firm is:
a. Perfectly inelastic
b. Downward-sloping
c. Relatively but not perfectly inelastic
d. Perfectly elastic