If Carol's Crayon Factory's Price Exceeds Its Average Total Cost

question 52

Multiple Choice

If Carol's Crayon Factory's price exceeds its average total cost in the short run,then

• A)it should shut down
• B)it is earning a profit
• C)profits are being maximized
• D)it should increase output
• E)it should decrease output

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Definitions:

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that establishes a uniform international sales law.

Contract Of Sales

A legal agreement between a buyer and a seller for the exchange of goods, services, or property for payment or promise of payment.

Merchant

An individual or business engaged in the selling of goods, especially on a large scale or with specialized knowledge.

Occupation

A person's principal job or business, especially as a means of earning a living.