In the long run, all of a firm's costs are variable. In this case the exit criterion for a profit-maximizing firm is to shut down if
a. price is less than average total cost.
b. price is greater than average total cost.
c. average revenue is greater than average fixed cost.
d. average revenue is greater than marginal cost.
a
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If a 2 percent change in price leads to a ________ percent change in the quantity demanded, then demand is ________
A) 2; elastic B) 1; unit elastic C) 3; inelastic D) 1; inelastic E) 0; perfectly elastic
Generally, most of the world’s industrial countries believe that central banks should be independent of their governments.
Answer the following statement true (T) or false (F)
Using a figure show that under full employment, a temporary fiscal expansion would increase output (over-employment) but cannot increase output in the long run
What will be an ideal response?
A joint venture allows a foreign firm to easier adjust to a new market and often meet various institutional requirements
Indicate whether the statement is true or false