If Market Price Is Greater Than or Equal to the Minimum

question 33

Multiple Choice

If market price is greater than or equal to the minimum of AVC but below the minimum of AC, then

• A)the firm will shut down.
• B)the firm will operate because its loss is less than if it shut down.
• C)revenue is lower than variable costs.
• D)profit is positive and so the firm will operate.

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Definitions:

Organizational

Pertaining to the structure and function of organizations, including their management, culture, and operational dynamics.

Solidarity Theories

Theories concerning the bonds that unite members of a society, focusing on shared values, interests, and goals.

Political Opportunities

Circumstances or situations that facilitate the ability of social movements or actors to exert influence on political systems.

Social Control

Mechanisms, strategies, and institutions used by societies to regulate individual behavior and maintain social order and conformity.