If TR > TVC but TR < TC, a Firm

question 29

Multiple Choice

If TR > TVC but TR < TC, a firm would ________ in the short run and ________ in the long run.

• A) operate; expand
• B) operate; exit the industry
• C) shut down; expand
• D) shut down; exit the industry

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Definitions:

True Proportion

The actual ratio or fraction of a population that possesses a particular attribute or characteristic.

Random Sample

A subset of individuals chosen from a larger set where each individual has an equal chance of being selected.

Large-Sample Z

A statistical test used to determine if two population means are different, applicable when the sample size is large.

Null Hypothesis

A hypothesis that suggests no significant difference or effect, proposed to be tested against an alternative hypothesis.