A profit-maximizing firm should shut down in the short run if the average revenue it receives is less than:
A. average total cost.
B. average fixed cost.
C. marginal cost.
D. average variable cost.
Answer: D
You might also like to view...
The adverse consequences of debt deflation are most evident ________
A) in the expansion of credit to high-risk borrowers B) on the balance sheets of nonfinancial businesses C) in a sharp decline in the real interest rate D) on the balance sheets of financial businesses
Sunk costs
a. can only be measured in monetary terms b. are opportunity costs c. should influence a person's choice if that person is a marginal decision maker d. lower the efficiency of production e. should not be considered when making economic decisions
For which of the following products would price discrimination be most difficult?
a. photograph developing b. tooth extractions c. airline tickets d. beer e. college education
If you pay a premium of 10 cents per bushel for a Corn put option with a strike price of $6.60, what's the most you can lose?
A. $0.10/bu B. $6.60/bu C. $6.70/bu D. Your potential loss is unlimited