Jim and Lisa Own a Dog-Grooming Business in Champlain, New

question 81

Multiple Choice

Jim and Lisa own a dog-grooming business in Champlain, New York, called JL Groomers. There are many buyers and many sellers in the dog-grooming service market. JL Groomers experiences normal cost curves, with the marginal cost (MC) curve crossing average variable cost (AVC) at $14 and average total cost (ATC) at $22. JL Groomers will always shut down if the market price is:

• A) $14.
• B) between $14 and $22.
• C) below $14.
• D) $22.
• E) above $14.

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Definitions:

Policy Of Insurance

A contract between an insurer and an insured, outlining the terms, coverage, premiums, and conditions under which the insurer agrees to compensate the insured for specific losses.

Garage Liability Insurance

Insurance coverage that protects auto dealerships, mechanic shops, and garage operators from liability claims resulting from their operations, including customer injuries and damage to customer vehicles.

Liability

The legal responsibility for one's actions or omissions, especially concerning the payment of damages or compliance with the law.

Garage Owner

An individual or entity that owns an establishment where vehicles are serviced, repaired, or housed.