In the Short Run, a Firm That Is a Price

question 20

Multiple Choice

In the short run, a firm that is a price taker will stay in business as long as

• A) price equals average revenue.
• B) marginal revenue is greater than or equal to marginal cost.
• C) price exceeds average variable cost.
• D) price is less than average variable cost.

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Definitions:

Discharge Pattern

The variation in the volume of water that flows in a stream or river over time.

Hydrograph

A chart that illustrates the change in discharge rate over time at a particular location in a river, or any other flow-carrying channel or conduit.

Increases

The act or process of becoming larger or greater in size, amount, number, or degree.

Susceptible to Erosion

A condition describing materials or landscapes that are easily worn away or removed by the action of water, wind, ice, or human activities.