A Competitive Firm Should Always Continue to Operate in the Short

question 114

Multiple Choice

A competitive firm should always continue to operate in the short run as long as

• A)P < ATC.
• B)P < AVC.
• C)MR > AVC.
• D)MR > MC.

---

Definitions:

Sales Fluctuate

Variations or changes in sales volume over a specified period due to factors such as market demand, seasonality, or economic conditions.

Inventory Management

The practice of ordering, storing, using, and selling a company's inventory, including the management of raw materials, components, and finished products.

Economic Ordering Quantity

A formula used to determine the optimal order size that minimizes the total cost of inventory management, including holding and ordering costs.

Red-Line

In finance, "red-line" or more commonly "redlining," refers to the unethical practice where banks refuse loans to neighborhoods based on racial or ethnic composition. If this term is meant in another context, it might not be a recognized key term.