If a Firm's Average Total Cost Is Less Than Price

question 78

Multiple Choice

If a firm's average total cost is less than price where MR = MC

• A)the firm should shut down.
• B)the firm should raise its price.
• C)the firm should continue to produce the output it is producing.
• D)the firm should cut back on its output to lower its cost.

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Definitions:

Flint

A hard, sedimentary cryptocrystalline form of the mineral quartz, historically used to make tools and weapons due to its ability to be chipped into sharp edges.

Farming Populations

Communities or groups of people primarily engaged in agricultural activities and the cultivation of food and crops.

Fertility

The natural capability of giving life; in humans, it refers to the ability to reproduce.

Food Foragers

Individuals or groups who obtain food by collecting wild plants and hunting animals, rather than through agriculture or animal husbandry.