If the Price Is Greater Than Average Total Cost at the Profit-Maximizing

question 160

Multiple Choice

If the price is greater than average total cost at the profit-maximizing quantity of output in the short run,a perfectly competitive firm will:

• A)continue to produce at a loss.
• B)produce at a profit.
• C)shut down production.
• D)reduce its fixed costs.

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Definitions:

Cube Roots

The number that when multiplied by itself twice gives the original number. Symbolically, the cube root of \(x\) is \(x^{1/3}\).

Perfect Cube

A value that represents the result of cubing an integer.

Evaluate

Process of determining the value of an expression or function.

Square Roots

The value that, when multiplied by itself, gives the original number, often denoted as √x.