If a Profit-Maximizing Firm Shuts Down in the Short Run

question 49

Multiple Choice

If a profit-maximizing firm shuts down in the short run, it must be true that before the shutdown, at all positive output levels,

• A) average total cost was less than average variable cost
• B) fixed cost was greater than total revenue
• C) variable cost was greater than total revenue
• D) profit was zero
• E) total cost plus total revenue was less than profit

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Definitions:

Internal Employee Movement

The transfer or promotion of employees within an organization, often as part of career development or succession planning strategies.

Organizational Identity

The self-concept of an organization, based on its central, distinctive, and enduring characteristics.

Implicit Employment Contract

An unwritten and unspoken agreement between an employer and employee that outlines mutual expectations, including job security and loyal service.

Job Rotation

An employment practice where employees are moved between two or more jobs in a planned manner to expose them to different experiences and widen their skills.