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:

Suffix

An affix that is added to the end of a word to change its meaning or function.

Obstetrics

A branch of medicine and surgery concerned with childbirth and the care of women giving birth.

Biopsy

A medical test involving the removal of tissue from a living body to examine it for disease.

Acronym

A word formed from the initial letters of other words, used for brevity in writing and speaking.