In the Short Run, a Firm Will Stay in Business

question 105

Multiple Choice

In the short run, a firm will stay in business as long as:

• A) price equals average revenue.
• B) marginal revenue is greater than or equal to marginal cost.
• C) price exceeds average variable cost.
• D) price is less than average variable cost.

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Definitions:

Rationality

The quality of being based on or in accordance with reason or logic, often relating to the making of decisions and judgments that are sensible and sound.

Influence Tactic

Methods or strategies used by an individual or group to persuade or encourage others to follow their direction or accept their decisions.

Ingratiation

A social influence strategy where an individual attempts to make themselves more likable to another, often through flattery or favors.

Assertiveness

The quality of being self-assured and confident without being aggressive, enabling clear and direct communication of needs or desires.