Multiple Choice
Suppose that when a firm produces the level of output at which price equals marginal cost, the firm's total revenue is less than its variable cost. In this case, the firm should:
A) not change its level of output even if it's earning an economic loss in the short run.
B) shut down.
C) produce more so that its total revenue increases.
D) purchase more fixed factors of production.
Correct Answer:

Verified
Correct Answer:
Verified
Q99: Suppose a firm uses workers and office
Q100: John is trying to decide how to
Q101: One reason that variable factors of production
Q102: Suppose Sarah owns a small company
Q103: Refer to the accompanying figure. When this
Q105: Refer to the accompanying graph. If this
Q106: Refer to the accompanying graph. If this
Q107: One implication of the shape of the
Q108: When Acme Dynamite produces 250 units of
Q109: The accompanying table shows a pizzeria's fixed