A Firm Will Shut Down in the Short Run If

question 424

Multiple Choice

A firm will shut down in the short run if the total revenue that it would get from producing and selling its output is less than its

• A)opportunity costs.
• B)fixed costs.
• C)variable costs.
• D)total costs.

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Definitions:

Discriminant Validity

The extent to which a construct is truly distinct from other constructs by empirical standards, often assessed through its lack of correlation with unrelated constructs.

Convergent Validity

When a scale correlates with other scales measuring the same construct.

Face Validity

When scale items appear, at face value, to measure what they are supposed to measure.

Convergent Validity

The degree to which two measures that theoretically should be related are actually related.