If Total Revenue Exceeds Fixed Cost, a Firm

question 143

Multiple Choice

If total revenue exceeds fixed cost, a firm

• A)should produce in the short run.
• B)has covered its variable cost.
• C)is making short-run profits.
• D)may or may not produce in the short run, depending on whether total revenue covers variable cost.

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Definitions:

Experiment

A research method in which the researcher adds one variable (called the independent variable) and then observes the effect on another variable (called the dependent variable) in order to learn if the independent variable causes change in the dependent variable.

Memory Session

A period dedicated to memorizing or recalling information from one's past experiences.

Binocular Vision

The ability to focus the two eyes in a coordinated manner in order to see one image.

Piaget's Concept

Piaget's Concept refers to the developmental theory formulated by Jean Piaget, positing that children move through four stages of cognitive development as they actively construct their understanding of the world.