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:

Kwashiorkor

A condition occurring in children who suffer severe protein and calorie shortages, which is characterized by stunted growth, a protuberant belly, and extreme apathy. Although therapeutic diets can reverse some effects, cognitive impairments are likely to persist.

Protein

A large biomolecule, or macromolecule, consisting of one or more long chains of amino acid residues, essential for the structure, function, and regulation of the body's cells, tissues, and organs.

Calorie Shortages

Instances where there is a deficit in the number of calories consumed versus those required for maintaining healthy bodily functions.

Fetal Alcohol Syndrome

A condition in a child resulting from alcohol exposure during the mother's pregnancy, causing growth problems, facial anomalies, and developmental disabilities.