If the Demand Curve Falls Below the ATC Curve but Lies

question 3

Multiple Choice

If the demand curve falls below the ATC curve but lies above AVC, then the firm should

• A)should shut down.
• B)operate in the short run but not the long run.
• C)set price = marginal cost.
• D)operate in the short run and the long run.

---

Definitions:

Capabilities Approach

A normative framework proposed by Martha Nussbaum and Amartya Sen that emphasizes what individuals are able to do and be, in contrast to resources they have.

Primary Focus

The main point of attention, interest, or activity on which efforts are concentrated in a particular context or endeavor.

Health

A state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Autonomy

The capacity to make an informed, uncoerced decision; frequently discussed in ethics and philosophy as a fundamental human right.