If a Profit-Maximizing Firm Shuts Down in the Short Run

question 49

Multiple Choice

If a profit-maximizing firm shuts down in the short run, it must be true that before the shutdown, at all positive output levels,

• A) average total cost was less than average variable cost
• B) fixed cost was greater than total revenue
• C) variable cost was greater than total revenue
• D) profit was zero
• E) total cost plus total revenue was less than profit

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Definitions:

Memory Span

The number of items, usually words or numbers, that a person can retain and recall in correct order.

Memory Span

The capacity to hold a small amount of information in mind in an active, readily available state for a short period.

Short-Term Memory

An ability to hold a small volume of information in a state that is both active and easily accessible for a limited time.

Encoding

The process by which information is transformed into a format that can be stored in memory, an initial step in memory formation.