A firm will choose to operate rather than shut down as long as
A. AVC is greater than MC.
B. price is greater than or equal to AVC.
C. AFC is greater than AVC.
D. price is greater than or equal to AFC.
Answer: B
You might also like to view...
A socially-optimal price regulation will NOT work if:
A) marginal cost is less than average total cost. B) marginal cost is less than average fixed cost. C) marginal cost is greater than average total cost. D) marginal cost is greater than average fixed cost.
The combination of rising inflation and higher unemployment is called:
A) recession. B) expansion. C) stagflation. D) deflation.
The use of domestic open market operations to counteract the effects of a foreign exchange market intervention on the domestic money supply is known as:
a. normalization. b. quantitative easing. c. sterilization. d. volatilization. e. depreciation.
Psychological incentives:
A. are not important in non-economic settings. B. never serve as commitment devices. C. are not important in economic settings. D. can serve as commitment devices.