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:

Role Playing

A method of learning or therapy involving the acting out of roles in specific scenarios to improve skills, understand others, or analyze behavior.

Hypnosis

A trance-like state of heightened focus and concentration, often used for therapeutic purposes to modify behaviors, thoughts, or feelings.

Dissociative Identity Disorder

A psychiatric disorder characterized by the presence of two or more distinct personality states or identities in a single individual.

Personal Shame

A deep feeling of guilt or embarrassment about one's actions, character, or associations.