A Firm Will ________ in the Short Run If Variable

question 241

Multiple Choice

A firm will ________ in the short run if variable costs exceed revenues.

• A) earn a profit
• B) produce at a loss
• C) break even
• D) shut down

---

Definitions:

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50 percent of the time, a concept fundamental in sensory and perception studies.

Difference Threshold

The minimum difference in stimulation that a person can detect 50 percent of the time.

Relative Magnitude

The comparison of the size, extent, or importance of something in relation to another.

Difference Threshold

The least variation in stimulation that an individual is able to recognize 50% of the occasions, commonly termed as the just noticeable difference (JND).