Firms Will Be Indifferent About Shutting Down or Producing If

question 150

Multiple Choice

Firms will be indifferent about shutting down or producing if the price they charge is

• A) less than their minimum average total cost (ATC).
• B) less than their minimum average variable cost (AVC).
• C) greater than their minimum average variable cost (AVC).
• D) greater than their minimum average total cost (ATC).
• E) equal to their minimum average variable cost (AVC).

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Definitions:

Deontological Ethical Theories

Ethical theories that place emphasis on adherence to duties and rules as the basis of moral actions.

Actions

Legal proceedings taken in a court or the steps taken in the execution of a legal right.

Decisions

Conclusions or resolutions reached after consideration, often referring to the outcomes of deliberations in legal, personal, or organizational contexts.

Ethically

In a manner consistent with moral principles and standards of conduct.