In the Short Run, If Price Is Less Than Average

question 32

Multiple Choice

In the short run, if price is less than average cost, a firm:

• A) will certainly shut down.
• B) might shut down, but might stay open.
• C) is earning positive profits.
• D) is earning normal profits.

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Definitions:

Test System

A configuration of equipment and software designed to evaluate the performance or reliability of a system or component under specified conditions.

HIV Test

A medical test used to determine if a person has been infected with the Human Immunodeficiency Virus, which causes AIDS.

Heterosexual Contact

Sexual interaction between individuals of different sexes, typically involving male and female participants.

HIV-Positive

The condition of having a positive test result for the human immunodeficiency virus, the virus that can lead to acquired immunodeficiency syndrome (AIDS).