If Total Revenue Is Greater Than Variable Cost but Less

question 93

Multiple Choice

If total revenue is greater than variable cost but less than total costs, the firm should

• A)remain in operation because revenues are sufficient to cover variable costs and some fixed costs.
• B)shut down because revenue is not sufficient to cover all costs.
• C)not make any decisions until it hires an economist.
• D)remain in operation because revenue is sufficient to cover all fixed costs.
• E)shut down because P is less than ATC.

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Definitions:

Cell Metabolism

The complex set of life-sustaining chemical reactions in cells that allows organisms to grow, reproduce, maintain structures, and respond to environments.

Oxygen

A chemical element essential for most forms of life on Earth, used in cellular respiration.

Raw Materials

Basic materials from which products are made, including direct materials like wood for furniture or iron ore for steel production.

Isotonic Solution

Solution that is equal in solute concentration to that of the cytoplasm of a cell; causes cell to neither lose nor gain water by osmosis.