If a Firm Is Operating at a Loss in the Short

question 78

Multiple Choice

If a firm is operating at a loss in the short run and finds that its price is greater than average variable cost, then in the short run:

• A) it should produce where MR = MC.
• B) it should produce zero output.
• C) it should go out of business.
• D) total revenue is less than total variable costs.
• E) total revenue is greater than total costs.

---

Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of another entity, without having control over those policies.

Investment Account

A type of account held at a financial institution that holds securities, cash, and other assets in the name of the investor.

Shares Sold

Refers to the number of shares of stock that have been bought and sold by investors over a given period, indicating trading activity and liquidity.