Use the Information Below to Answer the Following Questions

question 64

Multiple Choice

Use the information below to answer the following questions.
Fact 12.2.1 Chevy Volt Production Temporarily Shut Down
GM will temporarily lay off 1,300 employees as the company stops production of the electric car, Chevy Volt, for five weeks. GM had hoped to sell 10,000 Volts last year, but ended up selling just 7,671. It plans to maintain inventory levels by adjusting production to match demand.
Source: Politico, March 2, 2012
-Refer to Fact 12.2.1. The shutdown decision maximizes GM's economic profit (or minimizes its loss) when price is less than

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

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Definitions:

Baseball Game

A competitive sport involving two teams, where players take turns batting and fielding, aiming to score runs by hitting a ball and running bases.

Prank

A mischievous act intended for amusement, often at the expense of others.

Sue

To initiate legal proceedings against an individual or entity, typically to seek remediation for a grievance or injury.

Cyberdefamation

The act of damaging someone's reputation by making false statements about them on the internet.