Suppose That at a Firm's Profit-Maximizing Level of Output, Its

question 143

Multiple Choice

Suppose that at a firm's profit-maximizing level of output, its total revenue is $1,250, the total cost of its variable factors of production is $1,000, and its total fixed cost is $500. This firm will ________ in the short run, and will ________ in the long run.

• A)shut down; reopen for business
• B)earn a profit; earn a loss
• C)earn a loss; earn a profit
• D)not shut down; exit the industry

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Definitions:

Parasympathetic Systems

A branch of the autonomic nervous system responsible for conserving energy and reducing the heart rate.

Opposing

Diametrically differing or conflicting with another position, direction, or idea.

Primary Motor Cortex

Region of frontal lobe that controls voluntary movement.

Voluntary Movement

Movement controlled by the individual through conscious effort, involving skeletal muscles.