A Profit- Maximising Firm Would Shut Down in the Short

question 10

Multiple Choice

A profit- maximising firm would shut down in the short run when:

• A) marginal revenue is less than marginal cost
• B) average revenue is less than average cost
• C) total revenue is less than total cost
• D) average revenue is less than average variable cost

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Definitions:

Cooperative

An organization that is owned and operated by its members, who share the profits and benefits and democratically make decisions.

General Partnership

A business arrangement in which two or more individuals share the management, profits, and liabilities of the business.