For All Positive Levels of Output,when Will a Firm Shut

question 41

Multiple Choice

For all positive levels of output,when will a firm shut down in the short run

• A)when its loss exceeds its average costs
• B)when its total revenue is less than its average variable costs
• C)when the price of its product is less than its average variable cost
• D)when it cannot cover its sunk costs

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Definitions:

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Profitability of Assets

Profitability of Assets assesses how effectively a company uses its assets to generate profits, typically measured as a ratio of net income to total assets.

Common Stockholders

Owners of common shares in a corporation, who have voting rights and are entitled to dividends as declared by the company's board of directors.

Earnings Per Share

A financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock, measuring its profitability on a per-share basis.