A firm will not shut down in the long run as long as the firm's revenue:
A. is larger than the firm's variable cost.
B. is greater than the firm's marginal cost.
C. is greater than the fixed cost.
D. is less than the total cost.
Answer: A
You might also like to view...
When a Peruvian buys a U.S. government bond, from the perspective of Peru, this is a(n):
A. capital inflow. B. export. C. capital outflow. D. import.
A downward-sloping portion of a long-run average total cost curve is the result of
a. economies of scale. b. diseconomies of scale. c. diminishing returns. d. the existence of fixed resources.
In a capitalistic economic system, who owns most of the nation's resources?
A. Labor unions B. The government C. Private individuals D. No one
A drought has destroyed orange crops in California. The drought has caused
A) scarcity because there are less oranges now than people want. B) scarcity because people have to switch to oranges grown in Florida. C) a shortage because people cannot obtain as many oranges as they wish to buy at the pre-freeze price. D) a shortage because orange growers will have less income.