When Price Is Below Average Variable Cost, a Firm in a Competitive

question 451

Multiple Choice

When price is below average variable cost, a firm in a competitive market will

• A)shut down and incur fixed costs.
• B)shut down and incur both variable and fixed costs.
• C)continue to operate as long as average revenue exceeds marginal cost.
• D)continue to operate as long as average revenue exceeds average fixed cost.

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Definitions:

Enacted Values

Represent the values and norms that are actually exhibited or converted into employee behavior within an organization.

Corporate Value Statements

Declarations made by a company to express its core principles and ethical standards intended to guide its practices and decisions.

Realistic Job Previews

An employment tool used to provide prospective employees with a truthful understanding of what their job will entail, including both positive and negative aspects.

Organizational Socialization

The process through which new employees learn the attitudes, knowledge, skills, and behaviors required to function effectively within an organization.