A Firm Will Shut Down Temporarily When the Price Is

question 91

Multiple Choice

A firm will shut down temporarily when the price is so low that total revenue is insufficient to cover the

• A)total cost of production.
• B)total variable cost of production.
• C)total fixed cost of production.
• D)marginal cost of production.
• E)average variable cost of production.

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Definitions:

Utility Function

A mathematical representation in economics that describes how different goods or bundles of goods satisfy a consumer's needs and preferences.

Budget Constraint

An economic model representing all the combinations of goods and services a consumer can afford, given their income and the prices of goods.

Income

The financial gain or money received by an individual or household from various sources like work, investments, or transfers, over a period of time.

Apples

A popular fruit known for its variety and nutritional value often used in culinary dishes and beverages.