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NEW QUESTION: 1
A firm should cease to do business when:
A. Price average variable cost
B. Price average total cost
C. Price marginal cost
Answer: A
Explanation:
A firm should cease to do business when P AVC. In this case the company is not even making incremental revenue for each additional product sold. When AVC P ATC, the firm while not profitable will be making money above its variable costs. If P MC or ATC MC, the firm may be profitable but not maximizing profit potential.

NEW QUESTION: 2

A. II, IV only
B. I, IV only
C. I, III only
D. II, III only
Answer: C

NEW QUESTION: 3

A. Option D
B. Option B
C. Option C
D. Option A
Answer: B

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