In the Long Run

question 38

Multiple Choice

In the long run

• A)the firm shuts down if revenue is less than its avoidable costs.
• B)marginal profit is greater than zero.
• C)if economic profit is zero.
• D)supply curves are identical to the short run supply curves.

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Definitions:

Lower Level

Pertains to the subordinate or less complex components within a system, organization, or hierarchy.

BAT Model

The Behaviorally Anchored Rating Scale, a method used in performance evaluation to combine qualitative and quantitative measures.

Cash Flows

The sum total of monetary transactions incoming and outgoing in a firm, crucially affecting its short-term financial health.

BAT Model

Behaviorally Anchored Rating Scale (BARS) Model used for evaluating performance by comparing specific behavioral examples of performance against a scale of performance levels.