If Total Variable Cost Exceeds Total Revenue at All Output

question 72

Multiple Choice

If total variable cost exceeds total revenue at all output levels, a perfectly competitive firm

• A)should produce in the short run.
• B)is making short-run profits.
• C)should shut down in the short run.
• D)has covered its fixed cost.

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Definitions:

Central Processing

A cognitive processing route that involves careful and thoughtful consideration of persuasive message content.

Peripheral Processing

A mode of information processing in persuasion that involves focusing on superficial cues rather than the central content of the message, often leading to temporary attitude change.

Need For Cognition

A tendency to engage in and enjoy effortful thinking, analysis, and mental problem solving.

Personal Relevance

Degree to which people expect an issue to have significant consequences for their own lives.