Suppose the Minimum Average Total Cost (ATC) of a Firm

question 80

Multiple Choice

Suppose the minimum average total cost (ATC) of a firm competing in a competitive price-taker market was $1.00 per unit and that the firm's minimum average variable cost (AVC) was $.80 per unit. If the market price was $.75 per unit, a profit-seeking firm would

• A) shut down immediately.
• B) produce where MR = MC in the short run.
• C) shut down in the long run but remain in business in the short run.
• D) do both b and c.

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Definitions:

Left Ventricle

The chamber of the heart that receives oxygen-rich blood from the left atrium and pumps it out to the body through the aorta.

Ventricular Systole

Ventricular systole is the phase of the cardiac cycle during which the ventricles contract, pumping blood out of the heart and into the circulatory system.

Semilunar Valves

Heart valves located between the ventricles and the major arteries leaving the heart, which prevent the backflow of blood.

AV Valves

Atrioventricular (AV) valves are valves located between the atria and ventricles of the heart that prevent backflow of blood from the ventricles into the atria during contraction.