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:

Reliable

A term indicating the consistency or repeatability of a measure or test over time.

Test Outcome

The result or conclusion derived from conducting a test, which could be quantitative or qualitative, based on the objectives and methodology of the test.

Hypothesis

An educated guess formed on the grounds of restricted data, designed to facilitate more in-depth inquiry.

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations of the independent variable.