In the Long Run, a Profit-Maximizing Firm Will Choose to Exit

question 330

Multiple Choice

In the long run, a profit-maximizing firm will choose to exit a market when

• A)average fixed cost is falling.
• B)variable costs exceed sunk costs.
• C)marginal cost exceeds marginal revenue at the current level of production.
• D)total revenue is less than total cost.

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Definitions:

Across Cultures Competency

The ability to effectively operate and communicate in various cultural environments, respecting and understanding diverse perspectives.

Feng Shui

An ancient Chinese practice involving the arranging of living spaces or environments to create harmony and balance with the natural world.

State of Mind

The particular mental or emotional condition that someone is in at a specific time.

Maximize Profit

A strategy focusing on increasing the difference between the revenue generated and the costs incurred by a business.