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.

---

Definitions:

Mispell

To write a word with incorrect letters or incorrect arrangement of letters.

Conceive

To conceive means to form or develop an idea, plan, or understanding in the mind.

Controling

The act of directing or regulating the behavior or operations of something or someone.

Unwrapped

Exposed or revealed by removing a covering.