If Market Price Is Greater Than the Minimum of AVC

question 89

Multiple Choice

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

• A)the firm will shut down.
• B)revenue covers variable costs and some of the fixed costs and profit is positive.
• C)revenue covers variable costs and some of the fixed costs, although profit is negative.
• D)economic profit is zero.

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Definitions:

Participant Bias

A type of bias that occurs when participants in a study act or respond differently because they know they are being observed.

Double-Blind Experiments

Double-Blind Experiments are studies where neither the participants nor the experimenters know who has been administered the treatment or the placebo, reducing biases.

Experimenter Bias

The influence of the experimenter’s expectations on the outcome of research.

Double-Blind Experiment

An experimental design in which neither the experimenter nor the participants are aware of which participants are in the experimental group and which are in the control group until the results are calculated.