In the Long Run,if a Firm's Total Cost Exceeds Its

question 14

Multiple Choice

In the long run,if a firm's total cost exceeds its total revenue at all output levels,it should

• A)always exit the industry
• B)always continue operating
• C)increase the amount of its fixed inputs
• D)increase the proportion of its total cost that is fixed
• E)maximize the difference between its marginal revenue and its marginal cost

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Definitions:

Demand Characteristics

Subtle cues or signals in an experimental environment that influence participants' behaviors or responses.

Independent Variables

Factors or conditions that are manipulated or controlled by researchers to determine their effects on dependent variables.

Case History

A detailed account of a person's life and psychological problems, used for analysis or study.

Correlational Study

A research method that examines the relationship between two or more variables without manipulating them.