Which of the Following Is Correct

question 3

Multiple Choice

Which of the following is correct?

• A)Rate = Driving force × Resistance
• B)Driving force = Rate × Resistance
• C)Resistance = Driving force × Rate
• D)Rate = Resistance/Driving force

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Definitions:

Short Run

A time period in economics where at least one factor of production is fixed, limiting the immediate response to changes in demand or supply.

AVC

Average Variable Cost, the total variable cost divided by the quantity of output, representing the variable cost per unit of output.

Shutdown Point

The level of output at which a company is not making enough revenue to cover its variable costs, making it economically viable to cease production temporarily.

Accounting Profits

The total revenue of a business minus the explicit costs, reported on financial statements according to standard accounting practices.