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:

Strategic Management

Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company's top management, based on consideration of resources and assessment of the internal and external environments.

Mergers and Acquisitions

The process where companies are combined or bought out to enhance competitive positioning, gain market share, or achieve synergies.

Different Types

Refers to various categories or varieties within a specific domain or context.

Merger

The combination of two or more companies into a single entity, with the goal of achieving synergies and improved competitive position.