In the Short Run, a Profit-Maximizing Firm in a Price-Taker

question 105

Multiple Choice

In the short run, a profit-maximizing firm in a price-taker market will definitely stop production if

• A) economic profit is zero.
• B) price falls below average total cost.
• C) price is less than average variable cost.
• D) it cannot completely cover its fixed costs.

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Definitions:

Negotiator's Choice

The decision or strategy a negotiator decides to employ in order to achieve their desired negotiation outcome.

Signal

An act, gesture, or piece of information that conveys a message, intention, or desired action to another party.

Predict

To foretell or estimate the likelihood of a future event or trend based on current knowledge or analysis.

Encoding

The process of converting information into a form that can be communicated or processed.