If a Firm Is Currently Equating MR and MC and Product

question 45

Multiple Choice

If a firm is currently equating MR and MC and product price = $24, AVC = $22, and ATC = $26, then in the long run this firm:

• A) will continue to operate at a loss.
• B) will earn a positive profit.
• C) will go out of business.
• D) should decrease price.

---

Definitions:

Path-Goal Theory

A leadership theory that suggests a leader's behavior is contingent on the satisfaction, motivation, and performance of subordinates.

Directive

An instruction or order given by someone in authority, guiding actions or strategies in various contexts.

Supervisor

A role within organizations responsible for overseeing the performance and activities of employees, usually within a specific department or area.

Clarity And Control

Refers to the clear understanding and management of tasks, roles, and expectations within an organization or project to ensure efficiency and achievement of objectives.