In the short run, a perfectly competitive firm will always shut down if total revenue is ____ at all positive output levels.

A) less than total cost
B) less than total cost but greater than variable cost
C) less than total cost but greater than fixed cost
D) greater than fixed cost
E) less than variable cost

Fixed Cost

Costs that do not change with the level of output produced, such as rent or salaries, remaining constant regardless of business activity levels.

Total Revenue

The total amount of money generated by a firm or entity from its business activities, calculated by multiplying the price by the quantity sold.