If the Price of a Product Is $12, Its Average

question 45

Multiple Choice

If the price of a product is $12, its average total cost is $2 and its average variable cost is $15 at the profit-maximizing output level,  in the short run the firm:

• A) should expand output until MR = MC.
• B) cannot cover total fixed costs.
• C) experiences a loss.
• D) must always shut down.

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Definitions:

Interpersonal Relations

Interpersonal Relations involve interactions and connections between individuals, influenced by factors like communication, emotions, and shared interests, impacting social and work environments.

Customer Service Orientation

A focus or approach towards prioritizing and ensuring customer satisfaction and needs.

Workplace Incivility

This term describes rude or unsociable speech or behavior in the workplace that violates norms for respect.

Interpersonal Relations

The social and emotional interactions between two or more individuals in an environment.