A firm realizes that the market price has fallen below its average total costs, and it is now earning a loss. What is the best action for the firm to take in the short run?
A. Produce where MC = MR to minimize losses if P > AVC.
B. Shut down if price is greater than average variable costs.
C. Produce where MC = MR to minimize losses if P < AVC.
D. Shut down if total revenue is less than fixed costs.
A. Produce where MC = MR to minimize losses if P > AVC.
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A factor of production is the same as:
a. the amount of a good produced. b. the price of a good. c. a profit of a firm. d. an opportunity cost. e. a resource.
Overfishing and extinction of species arise because of:
a. an abundance of natural resources. b. communist countries. c. the lack of incentive to take care of these species. d. private ownership of these resources. e. a high degree of economic freedom in all countries.
A limitation one faces when shopping for clothes is the amount of time available to shop
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Table 3.2 below to answer the question(s) that follow.Table 3.2Price per CheeseburgerQuantity Demanded (Cheeseburgers per Month)Quantity Supplied (Cheeseburgers per Month)$51,500 500 61,200 700 7 900 900 8 6001,100 9 3001,300Refer to Table 3.2. If the price per cheeseburger is $8, the price will
A. increase because there is an excess supply in the market. B. decrease because there is an excess demand in the market. C. remain constant because the market is in equilibrium. D. decrease because there is an excess supply in the market.