A Catfish Farmer Will Shut Down Production When

question 91

Multiple Choice

A catfish farmer will shut down production when

• A)He is losing money.
• B)Price falls below AVC.
• C)Total revenue falls below total costs.
• D)The best he can do is break even.

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Definitions:

Income Statement

a financial report that provides a summary of a company’s revenues, expenses, and profits/losses over a specific period of time.

Wages Payable

An account that reflects the total amount owed to employees for work performed that has not yet been paid.

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.