When Price Exceeds Average Variable Cost for a Firm,it Is

question 30

Multiple Choice

When price exceeds average variable cost for a firm,it is possible that:

• A) it is earning an economic profit.
• B) it is breaking even.
• C) it is suffering an economic loss.
• D) any of the above is true.

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Definitions:

Solvent

Liquid in which other substances dissolve.

Cohesion

The force that holds molecules of the same substance together, such as water molecules in a drop of water.

Evaporation

The process by which water changes from a liquid to a vapor or gas, often contributing to the water cycle.

Homeostasis

The process by which living organisms regulate their internal environment to maintain a stable, constant condition.