-Refer to the Above Figure

question 270

Multiple Choice

-Refer to the above figure. In order to stay open in the short run, this firm must

• A) earn a positive profit.
• B) receive a price equal to or greater than the minimum of its average variable cost.
• C) receive a price exactly equal to its average total cost.
• D) recover its fixed cost.

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Definitions:

Constructive Dilemma (CD)

A form of argument in which, from two conditional statements and the affirmation of their antecedents, one infers the affirmation of their consequents.

Atomic Sentences

Simple sentences that cannot be broken down into smaller sentences without losing meaning.

Truth Table

A tabular method for representing the logical relationships of statements or propositions by showing every possible combination of truth values.

Atomic Sentences

Fundamental sentences that do not contain any logical connectives and express a basic claim that can be true or false.