Which of the Following Statements Is Definitely True When Price

question 95

Multiple Choice

Which of the following statements is definitely true when price is less than average total cost for a firm producing the profit-maximizing level of output in the short run?

• A)The firm is running a loss in an accounting sense, so that total revenue is less than total explicit costs.
• B)The firm will minimize its losses by shutting down.
• C)The firm will be earning negative total revenue.
• D)The firm is incurring an economic loss.

---

Definitions:

Energy Efficient

Description of devices, systems, or processes that use less energy to perform the same tasks as their less efficient counterparts, reducing overall energy consumption.

4G

Stands for fourth generation. The current mobile communication standard with faster data transfer rates than 3G.

Traffic Signal

A device that controls the flow of vehicles and pedestrians through intersections or roadways by using lights of standard colors (red, yellow, green).