A Firm Will Choose to Operate Rather Than Shut Down

question 105

Multiple Choice

A firm will choose to operate rather than shut down as long as

• A) price is greater than or equal to AFC.
• B) AFC is greater than AVC.
• C) price is greater than or equal to AVC.
• D) AVC is greater than MC.

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Definitions:

Observations

The action of closely monitoring or noticing events, behaviors, or phenomena, typically as part of a scientific study or assessment.

Individual Approach

A personalized method or strategy tailored to meet the unique characteristics and needs of an individual.

Immediate Action

A prompt and direct response to a situation or problem, often to mitigate or resolve it quickly.

Buy-in

Agreement and acceptance of an idea, plan, or strategy by all involved or affected parties.