A Firm Will Continue to Produce in the Short Run

question 229

Multiple Choice

A firm will continue to produce in the short run even though economic profits are negative as long as

• A) the amount of the loss is no greater than the amount of fixed cost.
• B) MC = MR.
• C) it earned positive economic profits last year.
• D) it has fixed obligations to pay.

---

Definitions:

Proposed Uses

Suggested or recommended ways in which something can be used or applied, often based on research or theory.

Criterion Measure

A standard or benchmark against which the validity of a test score or the performance of an individual can be evaluated.

Grade Point Average

A numerical calculation representing the average value of the accumulated final grades earned in courses over time.

Item Analysis

A series of statistical tests and procedures that can be used to assess for homogeneity in a test.