If ________, a Firm Would Operate in the Short Run

question 133

Multiple Choice

If ________, a firm would operate in the short run and exit the industry in the long run.

• A) TR > TVC and TR > TC
• B) TR > TVC but TR < TC
• C) TR < TC and TR < TVC
• D) TR = TVC but TR > TC

---

Definitions:

Variable Budget

A budget that adjusts to changes in the level of activity, providing a more realistic financial forecast than a static budget.