The Shutdown Decision Can Be Restated in Terms of Producer

question 51

Multiple Choice

The shutdown decision can be restated in terms of producer surplus by saying that a firm should produce in the short run as long as:

• A) revenue exceeds producer surplus.
• B) producer surplus is positive.
• C) producer surplus exceeds fixed cost.
• D) producer surplus exceeds variable cost.
• E) profit and producer surplus are equal.