When a Firm Chooses to Shutdown, It Is

question 33

Multiple Choice

When a firm chooses to shutdown, it is

• A)making a poor decision because it should always produce where marginal cost equals marginal revenue.
• B)making a poor decision because it should always produce where average costs exceed average revenue.
• C)making a good decision as long as the price it is getting is less than its average total costs.
• D)making a good decision as long as the price it is getting is less than its average variable costs.

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Definitions:

Instinctual

Instinctual relates to behaviors, responses, or actions that arise from natural internal drives rather than learned behavior, often associated with survival.

Psychological

Pertaining to the mind or mental processes, often in relation to behavior and well-being.

Ethnic Groups

Communities or populations sharing a common and distinctive culture, religion, language, or the like.

Language Patterns

The distinguishable ways in which words and sentences are structured and used in spoken and written communication, often unique to a particular group, region, or individual.