A Firm Finds That at Its MR = MC Output

question 262

Multiple Choice

A firm finds that at its MR = MC output, its TC = $1,000, TVC = $800, TFC = $200, and total revenue is $900. This firm should

• A)shut down in the short run.
• B)produce because the resulting loss is less than its TFC.
• C)produce because it will realize an economic profit.
• D)liquidate its assets and go out of business.

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Definitions:

Foreign Assignments

Work tasks or roles allocated to employees in a location outside of their home country, typically as part of international business operations.

Parent Company

A corporation that owns enough voting stock in another firm to control its management and operations by influencing or electing its board of directors.

Foreign Direct Investment

An investment made by a firm or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country.

Environmentally-Friendly

Describes practices, products, or policies that are designed to have minimal or beneficial impact on the environment, often emphasizing sustainability and conservation.