If Price Lies Above the Minimum Point on the ATC

question 88

Multiple Choice

If price lies above the minimum point on the ATC curve, in the short run the firm should ________ and in the long run it should ________.

• A) produce where MC = MR; exit the industry
• B) shut down; exit the industry
• C) produce where MC = MR; expand
• D) shut down; expand

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Definitions:

Relevant Legislation

Laws and legal provisions that are pertinent to a particular situation, activity, or context, affecting how entities should operate or comply.

Economic Trends

Patterns or movements in the economy that indicate the general direction of economic growth, decline, or stability over a period.

Immediate Supervisors

The directly overseeing manager(s) or leader(s) in a workplace, responsible for day-to-day management and guidance of employees.

Employment Interview

A formal conversation between a job applicant and a representative of an organization, aimed at assessing the applicant's suitability for a position.