A Firm Stands to Gain by Operating Instead of Shutting

question 184

Multiple Choice

A firm stands to gain by operating instead of shutting down as long as ________ sufficiently covers ________.

• A) price; average variable cost
• B) price; average fixed cost
• C) total revenue; total fixed costs
• D) operating profit; economic profit

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Definitions:

Eye Movement

The voluntary or involuntary movement of the eyes, which can be essential for visual tracking and focusing.

Dilate Blood Vessels

The process of widening or expanding the lumens of blood vessels, often to increase blood flow to certain areas of the body.

Glossopharyngeal Nerves

Cranial nerves IX that innervate the tongue and pharynx, playing key roles in taste, swallowing, and salivation.

Salivary Glands

Exocrine glands that produce saliva to initiate digestion and moisten the mouth.