The Long-Run Exit Rule Is to Exit the Industry If

question 106

Multiple Choice

The long-run exit rule is to exit the industry if:

• A) P > AVC.
• B) P < AVC.
• C) P > ATC.
• D) P < ATC.

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Definitions:

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Certified Cheque

A bank-endorsed cheque that confirms the drawer has sufficient funds in their account to cover the cheque's amount.

Bill Of Exchange

A written, unconditional order by one party directing another party to pay a fixed sum of money to a third party on demand or at a set time.

Accepted

Accepted refers to the express or implied approval or agreement to the terms of an offer, thereby creating a binding contract between the parties involved.