If the Market Price of a Product Is Between the Minimum

question 147

Multiple Choice

If the market price of a product is between the minimum average variable cost (AVC) and minimum average total cost (ATC) of a firm,that firm will

• A) always shut down.
• B) always continue to produce.
• C) produce in the short run but shut down in the long run.
• D) produce in the long run but shut down in the short run.
• E) make positive economic profits.

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Definitions:

Read/Write Head

The mechanism that retrieves (reads) and records (writes) the magnetic data to and from a data disk.

Access Time

The duration required to retrieve data from a storage device or memory.

Seek Time

The time it takes for the hard drive’s read/write heads to move over the surface of the disk to the correct track.

Latency

The delay before a transfer of data begins following an instruction for its transfer; it is often used to describe delays in network communication.