Mrs Smith Operates a Business in a Competitive Market

question 567

Multiple Choice

Mrs. Smith operates a business in a competitive market. The current market price is $8.50. At her profit-maximizing level of production, the average variable cost is $8.00, and the average total cost is $8.25. Mrs. Smith should

• A)shut down her business in the short run but continue to operate in the long run.
• B)continue to operate in the short run but shut down in the long run.
• C)continue to operate in both the short run and long run.
• D)shut down in both the short run and long run.

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Definitions:

Declared War

An official announcement by a state or nation about its decision to engage in armed conflict against another state or entity.

Blitzkrieg

A military strategy developed by Germany before and during World War II, characterized by rapid and powerful initial attacks combining air power and mobile forces to quickly overwhelm the enemy.

Motorized Warfare

The use of motor vehicles such as tanks, trucks, and armored vehicles in combat operations to enhance mobility, speed, and firepower.

Enigma Machine

A device used by the German military during World War II for encrypting communications, which was later deciphered by Allied cryptologists.