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:

Variable Amount

Refers to a quantity that can change or vary depending on certain conditions or inputs.

Characters

In computing, characters refer to letters, numbers, and symbols that can be input, displayed, or manipulated.

Work Area

A designated space, either physical or digital, where tasks and activities related to work are performed.

Database Requirements

Specifications that outline the architecture, functionalities, and data types needed in a database to support specific applications and operations.