Firm Level Economics | Modules 5, 6, 7, 8 | 75 Questions | 100% Correct Answers

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From smallest amount of owners to largest, which of the following orders best represents the different types of firms based upon the average number of owners in those type of firms? Partnerships, s... ole proprietorships, corporations Sole proprietorships, partnerships, corporations Not enough information to answer Sole proprietorships, corporations, partnerships - ✔✔Sole proprietorships, partnerships, corporations | On average, sole proprietors have one owner, partnerships have several, and corporations have many owners. Since they have no control over price, we know that a perfectly competitive firm in the short run will shut down if economic profits are negative. True False - ✔✔False, the firm shut down only if P < AVC | Firms will continue to produce even with negative profits as long as P is greater than or equal to AVC in the short run. Which of the following factors is a good indicator of the market structure of an industry? Number of owners of each firm in the market Number of firms in the market Number of products in the market [Show More]

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