In the Short Run, the Firm Should Shut Down When

question 28

Multiple Choice

In the short run, the firm should shut down when

• A) price is equal to the average total cost of production.
• B) price is less than the minimum of the average variable cost of production.
• C) price is equal to the minimum of the marginal cost of production.
• D) price is equal to the minimum of the average total cost of production.

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Definitions:

Paranoia

A psychological state in which individuals experience false beliefs of being persecuted, unnecessary feelings of jealousy, or an inflated sense of self-worth.

Depression

A mental health disorder marked by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Psychosomatic

Referring to physical symptoms that are caused or significantly influenced by psychological factors, such as stress or anxiety.

Somat

Pertains to the body, especially as distinct from the mind or personality.