If a Competitive Firm Is Losing Money in the Short

question 42

Multiple Choice

If a competitive firm is losing money in the short run, then it should

• A)never shut down in the short run.
• B)shut down only if P is less than ATC.
• C)shut down only if its losses are greater than its fixed costs.
• D)shut down.
• E)shut down only if TR is greater than TVC.

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Definitions:

Association

A connection or linkage between two ideas, concepts, or events, often based on prior experience or learning.

Observational Learning

A learning process in which a person observes and models another's behavior, attitudes, or emotional expressions.

Conscious Thoughts

Mental processes of which an individual is aware, involving reasoning, perception, and active cognition.

Observational Learning

A form of social learning that occurs through watching the behaviors of others and then imitating, or modeling, those behaviors.