In the Short Run, a Firm Should Shut Down Its

question 195

Multiple Choice

In the short run, a firm should shut down its business if price is less than:

• A) ATC.
• B) AR.
• C) MC.
• D) AVC.
• E) AFC.

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Definitions:

Technological Environmental Force

External factors related to advancements in technology that can affect the operations and competitiveness of businesses within an industry.

Demographic Characteristics

Attributes of populations, such as age, race, gender, income, and education, used in market research and policy analysis.

Social Forces

Factors that affect society’s basic structure and the behavior of its members, including values, culture, norms, and demographic characteristics.

Environmental Scanning

The process of collecting and analyzing information about elements in the external environment that could impact an organization's strategies.