In the Short Run, a Firm Will Stay in Business

question 105

Multiple Choice

In the short run, a firm will stay in business as long as:

• A) price equals average revenue.
• B) marginal revenue is greater than or equal to marginal cost.
• C) price exceeds average variable cost.
• D) price is less than average variable cost.

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Definitions:

Excise Taxes

Taxes levied on specific goods or services, such as alcohol and tobacco, often intended to discourage their use or raise revenue.

Progressive

A social or political ideology that advocates for reform and innovation, emphasizing progressive changes in society.

Direct Taxes

Taxes levied directly on an individual's or organization's income or wealth.

Marginal Tax Rate

The percentage of tax levied on each additional dollar of income, representing the tax rate applicable to every tax bracket for which you're eligible.