In Deciding Whether to Operate in the Short Run,the Firm

question 104

Multiple Choice

In deciding whether to operate in the short run,the firm must be concerned with the relationship between price of the output and

• A) total cost.
• B) average variable cost.
• C) total fixed cost.
• D) the number of buyers.

---

Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified period.

Price Per Unit

The cost of a single unit of product, which can be used to compare prices among similar products.

Market Growth Rate

The increase in size or sales of a specific market over a given period, typically expressed as a percentage.