An Unprofitable Motel Will Stay Open in the Short Run

question 289

Multiple Choice

An unprofitable motel will stay open in the short run if

• A)price (average nightly room rate)exceeds average variable cost.
• B)marginal revenue exceeds marginal cost.
• C)price (average nightly room rate)exceeds average fixed cost.
• D)marginal revenue exceeds price.

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Definitions:

Policy Analysis

The process of evaluating and analyzing public policies to understand their impact, effectiveness, and potential improvements.

Plusses And Minuses

An expression denoting the evaluation of the positive and negative aspects of a situation or decision.

Truth In

A principle or practice of being honest, transparent, and accurate in statements, representations, and actions.

Ethical Grounds

The basis or reasons for actions made in accordance with morals and values determining what is right and wrong.