If a Manufacturer Shuts Down in the Short Run, It

question 195

Multiple Choice

If a manufacturer shuts down in the short run, it must be true that before the shutdown, at all positive output levels,

• A)average total cost was less than average variable cost
• B)fixed cost was greater than total revenue
• C)variable cost was greater than total revenue
• D)profit was zero
• E)total cost plus total revenue was less than profit

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Definitions:

Simple Regression Analysis

Simple Regression Analysis is a statistical technique for estimating the relationship between a dependent variable and a single independent variable.

Simple Correlation Analysis

A statistical technique that measures the strength and direction of a linear relationship between two continuous variables.

Multiple Correlation Analysis

A statistical method used to understand the relationship between one dependent variable and two or more independent variables.

Variables

Represent individual data points or attributes that can change and be measured or observed.