When Price Exceeds Average Variable Cost but Not Average Total

question 73

Multiple Choice

When price exceeds average variable cost but not average total cost,the firm should,in the short run,

• A)Shut down.
• B)Produce at the rate of output where MR = MC.
• C)Minimize per-unit losses by producing at the rate of output where ATC is minimized in the short run.
• D)Minimize total losses by producing at the rate of output where ATC is minimized.

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Definitions:

Common Bile Duct

A major duct that carries bile from the liver and gallbladder into the small intestine for digestion.

Hypopharynx

The lower part of the pharynx (throat) that lies below the oropharynx and above the esophagus and larynx, involved in swallowing.

Pharynx

The muscular tube that extends from the back of the nose to the esophagus, part of the digestive and respiratory systems.

Small Intestine

A long, coiled section of the digestive system where most digestion and absorption of nutrients and minerals from food occurs.