If Price Exceeds Average Variable Cost but Is Less Than

question 107

Multiple Choice

If price exceeds average variable cost but is less than average total cost, a firm

• A)should further differentiate its product.
• B)should stay in business for a while longer until its fixed costs expire.
• C)is making some profit but less than maximum profit.
• D)should shut down.

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Definitions:

Agoraphobia

An anxiety disorder characterized by intense fear of places where escape might be difficult, or help might not be available, often leading to avoidance of such places.

Panic Disorder

A mental health condition characterized by sudden and repeated episodes of intense fear accompanied by physical symptoms such as chest pain, heart palpitations, and shortness of breath.

Avoidance Behaviors

Avoidance behaviors are actions taken to prevent or evade a perceived threat or discomfort, often seen in anxiety and other psychological conditions.

Extinction

In psychology, the process by which a conditioned response decreases in frequency and eventually disappears.