Which of the Following Is True

question 127

Multiple Choice

Which of the following is true?

• A) If price falls below average total cost the firm will shut down in the short run.
• B) Price and marginal revenue are the same in perfect competition.
• C) Economic profit per unit is found by subtracting AVC from price.
• D) Economic profit is always positive in the short run.

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Definitions:

Seismic Waves

Vibrations that travel through the Earth’s interior or along its surface, generated by earthquakes or other earth movements.

Medical Device

An instrument, apparatus, implant, or similar article used for diagnosing, preventing, or treating disease or other conditions.

Seafloor

The bottom surface of the ocean, covering a vast area and consisting of various geological features like underwater volcanoes, canyons, and plains.

Uplifted

The process by which regions of the Earth's crust are raised to higher elevations, often due to tectonic forces.