If Total Variable Cost Exceeds Total Revenue at All Output

question 72

Multiple Choice

If total variable cost exceeds total revenue at all output levels, a perfectly competitive firm

• A)should produce in the short run.
• B)is making short-run profits.
• C)should shut down in the short run.
• D)has covered its fixed cost.

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Definitions:

Motion

A formal proposal by a member of a court, seeking a decision on a legal matter.

Matter of Law

Issues resolved by a judge, concerning the application or interpretation of the law, as opposed to matters of fact, which are decided by a jury.

Recross-examination

The questioning of a witness by the opposing side after re-examination, intended to clarify or counter information that came up during re-examination.

Redirect Examination

A stage in a court proceeding where the party who originally called a witness has an opportunity to question the witness again after cross-examination.