In the Long Run, If a Firm Cannot Cover Its

question 82

Multiple Choice

In the long run, if a firm cannot cover its costs, then the profit-maximizing firm

• A)increases output and lowers price.
• B)continues to produce as long as total revenue exceeds fixed costs.
• C)seeks more rewarding opportunities in some other industry.
• D)continues to produce so that it maximizes its opportunity costs.
• E)continues to produce as long as total revenue exceeds variable costs.

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Definitions:

Transmission

The action or process of transmitting something or the state of being transmitted, such as data, diseases, or genetic traits.

Interpretation

The act or process of explaining the meaning of something; often applies to text, actions, or events.

Secondary Xylem

The part of a plant that transports water and nutrients from the roots to the shoots and leaves and provides support, formed after the primary xylem.

Vascular Cambium

A layer of tissue in plants that produces new vascular tissue, contributing to the plant's secondary growth.