If a Firm Is Operating at a Loss in the Short

question 78

Multiple Choice

If a firm is operating at a loss in the short run and finds that its price is greater than average variable cost, then in the short run:

• A) it should produce where MR = MC.
• B) it should produce zero output.
• C) it should go out of business.
• D) total revenue is less than total variable costs.
• E) total revenue is greater than total costs.

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Definitions:

Organizational Behaviour

The study of both group and individual performance and activity within an organization, and how these behaviours can be improved through leadership and control.

Turnover Problem

Issues arising from a high rate of employees leaving an organization, which can lead to decreased productivity and increased training and recruiting costs.

Organizational Behaviour

A discipline that investigates the impact of individuals, groups, and structure on behavior within organizations for the purpose of applying such knowledge toward improving an organization's effectiveness.

Analysis

The process of examining components or structure of something typically for purposes of interpretation or understanding.