Exhibit 10

question 22

Multiple Choice

Exhibit 10.2 shows a firm that charges price P* for output q*.In order to minimize loss in the short run,the firm should _____

• A)shut down, because price is greater than average variable cost.
• B)shut down, because price is greater than marginal cost.
• C)shut down, because price is less than marginal revenue.
• D)continue to produce, because price is greater than average variable cost.
• E)continue to produce, because price is greater than marginal cost.

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Definitions:

SMTP

Simple Mail Transfer Protocol, a protocol used for sending email messages between servers on the internet.

Outgoing Email Servers

The servers used to send email, typically using the SMTP protocol, from an email client to the recipient's email server.

Router

A networking device that forwards data packets between computer networks, directing internet or intranet traffic efficiently.

Drafts Folder

The drafts folder is a designated location in email and word processing applications where unfinished documents or messages are saved for later completion.