If Price Is Greater Than Average Variable Cost and Less

question 180

Multiple Choice

If price is greater than average variable cost and less than average total cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm will:

• A) produce at an economic loss.
• B) produce at an economic profit.
• C) shut down production.
• D) produce more than the profit-maximizing quantity.

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Definitions:

Air Brakes

Pneumatically actuated brakes used on most heavy-duty trucks. These brakes use air pressure to brake the vehicle by means of diaphragms, levers, S-cams, wedges, and rotor assemblies.

Safety Pressure Relief Valve

A term used to describe the pressure relief valve used on truck air brake systems more often known as a pop-off valve. Most pop-off valves are set to trip at 150 psi and are located on the supply (wet) tank in the system.

Truck Safety

Measures and practices implemented to ensure the safe operation of trucks, including equipment standards and driving regulations.

Pop-Off Valve

A safety device designed to release pressure from a system once it exceeds a predetermined level to prevent damage.