Table of contents

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0. Basic Principles of Economics1h 5m
1. Reading and Understanding Graphs59m
2. Introductory Economic Models1h 10m
3. The Market Forces of Supply and Demand2h 26m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Floors3h 45m
6. Introduction to Taxes and Subsidies1h 46m
7. Externalities1h 12m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. The Costs of Production2h 35m
11. Perfect Competition2h 23m
12. Monopoly2h 13m
13. Monopolistic Competition1h 9m
14. Oligopoly1h 26m
15. Markets for the Factors of Production1h 26m
16. Income Inequality and Poverty35m
17. Asymmetric Information, Voting, and Public Choice39m
18. Consumer Choice and Behavioral Economics1h 16m

11. Perfect Competition

Short Run Shutdown Decision

Microeconomics

11. Perfect Competition

Short Run Shutdown Decision

Previous problem

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Multiple Choice

If the price falls from P4 to P3, then output will decrease by

0 units

1 units

2 units

3 units

Previous problem

Verified step by step guidance

Identify the initial and final prices in the problem, which are P4 and P3 respectively.

Understand that the problem is asking about the change in output as a result of a price change from P4 to P3.

Recognize that the problem provides multiple choice options for the change in output: 0 units, 1 unit, 2 units, and 3 units.

Consider the concept of price elasticity of supply or demand, which measures how much the quantity supplied or demanded responds to a change in price.

Analyze any additional information or context provided in the problem that might indicate how output changes with price, such as a supply or demand curve, to determine the correct change in output.