A Firm Should Always Shut Down If Its Revenue Is

question 4

Multiple Choice

A firm should always shut down if its revenue is

• A) declining.
• B) less than its average fixed costs.
• C) less than its total costs.
• D) less than its avoidable costs.

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Definitions:

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy from the most basic physical needs to higher psychological needs, culminating in self-actualization.

Full Potential

The highest or fullest level of performance or achievement one can realistically attain.

Self-Respect

The regard one holds for oneself as a worthwhile, competent individual, often seen as a crucial aspect of mental health.

Conditional Positive Regard

Acceptance and love from others that depend on one’s behavior meeting certain conditions or standards.