When Price Is Below Average Variable Cost in the Short

question 94

Multiple Choice

When price is below average variable cost in the short run,what will a firm in a competitive market do

• A)It will shut down and incur fixed costs.
• B)It will shut down and incur both variable and fixed costs.
• C)It will continue to operate as long as average revenue exceeds marginal cost.
• D)It will continue to operate as long as average revenue exceeds average fixed cost.

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Definitions:

New Lights

Refers to supporters of the religious revival during the First Great Awakening in the American colonies, who sought a more personal and emotional connection to religion.

Old Lights

A term used during the First Great Awakening in the American colonies to refer to traditionalist Protestant ministers and congregations who opposed the emotionalism of the revivalists.

Preaching Without Permission

This refers to the act of delivering religious sermons or evangelizing without formal authorization in a specific location or under certain regulations, often raising issues of freedom of speech and religion.

George Whitefield

An English Anglican cleric who was one of the founders of Methodism and the evangelical movement, known for his powerful sermons during the 18th century.