In the Short Run, Which of the Following Is FALSE

question 267

Multiple Choice

In the short run, which of the following is FALSE about the shutdown point?

• A) Total revenue is equal to total fixed cost.
• B) Total revenue is equal to total variable cost.
• C) Product price is equal to the minimum average variable cost.
• D) Price multiplied by quantity must be equal to minimum average variable cost multiplied by quantity.

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Definitions:

Complement Method

A mathematical technique used to simplify the process of subtraction by utilizing the "complement" of a number.

Cash Discount

A reduction in an invoice amount available to the buyer for paying all or part of the amount due within a stated period of time.

Invoice Date

The date stated on an invoice; the beginning of the discount period.

Partial Payment

A payment that is made towards a debt or obligation that is less than the full amount owed at that time.