When Revenue Is Less Than Total Cost but More Than

question 13

Multiple Choice

When revenue is less than total cost but more than variable cost it implies:

• A)the firm is enjoying positive economic profits.
• B)the firm is earning normal profits.
• C)the firm can cover its variable cost and a part of its fixed costs.
• D)the firm is unable to cover its costs and should shut down.
• E)the firm is able to cover all its fixed and variable costs.

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Definitions:

Single Die

Refers to one of a pair of small objects, typically cube-shaped, with sides numbered from one to six, used in games of chance.

Monte Carlo

Monte Carlo methods are a broad class of computational algorithms that rely on repeated random sampling to obtain numerical results and estimate uncertain quantities.

Sample Space

The set of all possible outcomes of a statistical experiment.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.