A Firm Would Decide to Shut Down If Its Production

question 286

Multiple Choice

A firm would decide to shut down if its production resulted in

• A)MR < ATC.
• B)ATC > AVC.
• C)AFC > AVC.
• D)MR < AVC.

---

Definitions:

Federal Revenues

Income received by the federal government from taxes, fees, and other sources.

Annually Balanced Budget

A fiscal strategy or policy where government revenues are planned to match expenditures within a single year, aiming to prevent budget deficits.

Tax Revenues

Tax revenues refer to the income that is collected by the government from individuals and businesses, primarily through taxes such as income tax, sales tax, and property tax.

Government Spending

Government spending encompasses all the expenditures of government agencies and departments, including investments, consumption, and transfers, aimed at achieving economic and social objectives.