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.

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Definitions:

Sympathetic Nerve

A part of the autonomic nervous system that generally stimulates the body's fight or flight response.

Capillaries

The smallest blood vessels in the body, responsible for the exchange of water, oxygen, carbon dioxide, and other nutrients and waste substances between blood and tissues.

Venules

Small blood vessels that drain blood from capillaries and transport it to larger veins.

Arterioles

Small branches of arteries leading to capillaries, responsible for controlling blood flow and blood pressure by constricting or dilating.