If the Price Is Greater Than Average Total Cost at the Profit-Maximizing

question 160

Multiple Choice

If the price is greater than average total cost at the profit-maximizing quantity of output in the short run,a perfectly competitive firm will:

• A)continue to produce at a loss.
• B)produce at a profit.
• C)shut down production.
• D)reduce its fixed costs.

---

Definitions:

Planning Department

A division within an organization responsible for establishing strategies and coordinating the efforts required to achieve the organization’s goals.

Strategic Planning Pitfall

A common error or mistake made during the strategic planning process that can lead to unsuccessful outcomes or failure to achieve desired goals.

Corporate Culture

The shared values, beliefs, ethics, and practices that characterize an organization and guide its employees' behavior.

Environmental Opportunities

Circumstances in the external environment that a business can leverage to its advantage for growth or improvement.