Firms Will Always Stay in the Market in the Short

question 138

Multiple Choice

Firms will always stay in the market in the short run if the price they charge is

• A) less than their minimum average total cost (ATC).
• B) less than their minimum average variable cost (AVC).
• C) greater than their minimum average variable cost (AVC).
• D) greater than their minimum average total cost (ATC)but not greater than their minimum average variable cost (AVC).
• E) equal to their minimum average variable cost (AVC).

---

Definitions:

Tympanometry

A diagnostic test that measures the movement of the eardrum in response to changes in air pressure, used to detect fluid in the middle ear or Eustachian tube dysfunction.

Tympanic Membrane

Also known as the eardrum, it is a thin layer that separates the outer ear from the middle ear and vibrates in response to sound waves.

Middle Ear

The air-filled space located between the eardrum and inner ear containing the auditory ossicles.

Binaural

Pertaining to or involving both ears, often used to describe hearing processes that use input from both ears to perceive sound.