In the Short Run, a Firm Will Stay in Business

question 105

Multiple Choice

In the short run, a firm will stay in business as long as:

• A) price equals average revenue.
• B) marginal revenue is greater than or equal to marginal cost.
• C) price exceeds average variable cost.
• D) price is less than average variable cost.

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Definitions:

Measurement

The process or the result of quantifying the characteristics of an object or event, which can be expressed numerically.

Standardized Test Score

A measure of performance that has been normalized to fit a predefined scale, often used in educational contexts to compare individual performance across different populations.

Time Duration

The length of time that occurs between two events or processes.

Vehicle Miles-Per-Gallon

A measure of how many miles a vehicle can travel on a single gallon of fuel, used as an indicator of fuel efficiency.