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If a Firm's Short-Run Total Cost Curve Lies Above Its

Question 105

Multiple Choice

If a firm's short-run total cost curve lies above its total revenue curve at all output levels,the firm should


A) always shut down in the short run
B) always operate in the short run
C) operate in the short run if the maximum operating loss is less than its total fixed cost
D) operate in the short run if the minimum operating loss is less than its total fixed cost
E) operate in the short run if the average operating loss is less than its total fixed cost

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