If Price Exceeds Average Variable Cost but Is Less Than

question 107

Multiple Choice

If price exceeds average variable cost but is less than average total cost, a firm

• A)should further differentiate its product.
• B)should stay in business for a while longer until its fixed costs expire.
• C)is making some profit but less than maximum profit.
• D)should shut down.

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Definitions:

Super Keyword

The super keyword in Java is used for calling the constructor of a superclass, or to access members of a superclass that have been hidden or overridden.

Base Class Constructor

A base class constructor is a method in the base class that is called when an instance of a class or a subclass is created, to initialize the object.

Extends Keyword

In programming languages like Java, it specifies that a class is deriving from a base class.

Inheritance

A mechanism in object-oriented programming that allows a class to inherit properties and behavior (methods) from another class.