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:

Obsessions

Uncontrollable, persistent thoughts, images, ideas, or impulses that an individual feels intrude on his or her consciousness and that cause significant anxiety or distress.

Compulsions

Repetitive behaviors or mental acts that an individual feels he or she must perform.

Avoidant Personality Disorder

A disorder characterized by a long-standing pattern of extreme shyness, feelings of inadequacy, and sensitivity to rejection, leading to social inhibition and avoidance of social interactions.

Genetics

The study of genes, genetic variation, and heredity in living organisms; explaining how traits and characteristics are passed from one generation to the next.