A Firm Should Always Shut Down If Its Revenue Is

question 4

Multiple Choice

A firm should always shut down if its revenue is

• A) declining.
• B) less than its average fixed costs.
• C) less than its total costs.
• D) less than its avoidable costs.

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Definitions:

Z

'Z' often represents the Z-score in statistics, which is the number of standard deviations a data point is from the mean of the data set.

Square

A polygon with four equal sides and four right angles.

Relationship

How two or more notions, entities, or persons are associated, or the status of association.

Populations

The whole set of individuals or objects of interest in a particular study or statistical analysis.