To an Economist, Quitting

question 24

Multiple Choice

To an economist, quitting

• A)Makes sense if at the quantity where MC=MR the price is less than ATC.
• B)Makes sense if at the quantity where MC=MR the price is less than AVC.
• C)Makes sense if at the quantity where MC=MR the firm loses money.
• D)Never makes sense.

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Definitions:

Complements

Items frequently purchased in tandem, where a rise in the demand for one item results in a heightened demand for its companion product.

Shift Left

In software development, the practice of integrating and addressing quality and testing earlier in the development process.

Demand

The total quantity of a good or service that consumers are willing and able to purchase at various prices.

Chipotle

An international chain of fast-casual restaurants specializing in tacos and Mission-style burritos.