A Profit-Maximizing Firm Will Shut Down in the Short Run

question 391

Multiple Choice

A profit-maximizing firm will shut down in the short run when

• A)price is less than average variable cost.
• B)price is less than average total cost.
• C)average revenue is greater than marginal cost.
• D)average revenue is greater than average fixed cost.

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Definitions:

Visible Waves

Electromagnetic waves that are visible to the human eye, essentially the spectrum of light that people can see.

Eardrum

A delicate layer that isolates the outer ear from the middle ear, responding with vibrations to audio waves.

Sensitivity

The ability of a test or measurement to accurately identify the presence of a particular condition, disease, or characteristic.

Temperatures

Measures of the degree of hotness or coldness of a body or environment, typically expressed in degrees Celsius or Fahrenheit.