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:

Small Intestine

A part of the gastrointestinal tract between the stomach and large intestine, where most digestion and absorption of nutrients occurs.

Digestion

The biological process of breaking down food into absorbable components using enzymatic actions in the gastrointestinal tract.

Large Intestine

The last section of the digestive system, where water is absorbed and stools are formed.

Stomach

An organ in the gastrointestinal tract that breaks down food through the secretion of enzymes and acid, preparing it for further digestion and absorption.