If a Manufacturer Shuts Down in the Short Run, It

question 195

Multiple Choice

If a manufacturer shuts down in the short run, it must be true that before the shutdown, at all positive output levels,

• A)average total cost was less than average variable cost
• B)fixed cost was greater than total revenue
• C)variable cost was greater than total revenue
• D)profit was zero
• E)total cost plus total revenue was less than profit

Understand the distinctions between indirect costs and direct costs in project budgeting.

Distinguish between formative evaluations and summative evaluations in project assessment.

Interpret common acronyms used in project proposals, such as RFP and IFB.

Recognize and apply different types of graphical representations for task scheduling in project management.

---

Definitions:

Specialization And Trade

An economic strategy where individuals or nations focus on the production of certain goods or services where they have a comparative advantage, leading to increased efficiency and trade benefits.

Total Output

The total quantity of goods and services produced in an economy at a given time period.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the per unit cost as output increases.

Trade Sector

The segment of the economy that involves the exchange of goods and services across borders.