If a Firm's Average Total Cost Is Less Than Price

question 78

Multiple Choice

If a firm's average total cost is less than price where MR = MC

• A)the firm should shut down.
• B)the firm should raise its price.
• C)the firm should continue to produce the output it is producing.
• D)the firm should cut back on its output to lower its cost.

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Definitions:

Procedural Due Process

Procedural due process is a legal doctrine that requires the government to follow fair procedures before depriving a person of life, liberty, or property.

Fair Trial

A legal proceeding conducted according to the rules and principles established in the legal system to ensure an impartial and thorough hearing.

Charges

Fees or financial obligations that are required to be paid as part of a transaction or legal process.

Takings Clause

A provision in the Fifth Amendment of the U.S. Constitution that prohibits the government from taking private property for public use without just compensation.