In the Short Run, If a Firm's Price Is Greater

question 76

Multiple Choice

In the short run, if a firm's price is greater than its AVC but less than its ATC, the firm should:

• A)shut down immediately because it is generating an economic loss.
• B)shut down temporarily because it is generating an economic loss.
• C)continue operating at the same level of output because it is generating an economic profit.
• D)continue operating even though it is generating an economic loss.
• E)increase its output in order to earn more profits.

Understand the basic components and calculations involved in a balance sheet.

Comprehend purchasing, pricing, compensation, and policies relevant to business operations.

Understand the concepts and calculations related to the cash conversion cycle (CCC), Days of Inventory (DOI), Days Sales Outstanding (DSO), and Days Payable Outstanding (DPO).

Distinguish between different types of business financial statements and their purposes.

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Definitions:

Work-Home Conflict

A form of tension occurring when the demands of work and home life are incompatible and negatively affect each other.

Interrole Conflict

A psychological tension that occurs when the expectations of multiple roles that an individual occupies are incompatible.

Intrarole Conflict

A situation where conflicting expectations arise related to a single role that a person is performing.

Minimize Interaction

The action or strategy of decreasing the amount or frequency of communication or contact between individuals or entities.