Quiz_121 - 85 -runloss. continuetoproduce A B C D if

Quiz_121 - 85 -runloss. continuetoproduce A B C D if

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85) Tedʹs Pancake Kitchen suffers a short-run loss. When should Ted decide to shut down rather thancontinue to produce?A) if his Kitchenʹs revenue is less than its variable costsB) if his Kitchenʹs revenue is less than its explicit costsC) if his Kitchenʹs revenue is less than its total costsD) if his Kitchenʹs revenue is less than its fixed costsAnswer: A85)Diff: 2Page Ref: 409-410/409-410Topic: Shutting Down in the Short RunLearning Outcome: Micro 13: Explain the relationship between production and profits under perfectcompetitionAACSB: Reflective Thinking86) Martyʹs Bird House suffers a short-run loss. Marty can reduce his loss below the amount of histotal fixed costs by continuing to produce if his revenue86)Diff: 2Page Ref: 409-410/409-410Topic: Shutting Down in the Short RunLearning Outcome: Micro 13: Explain the relationship between production and profits under perfectcompetitionAACSB: Reflective Thinking87) In analyzing the decision to shut down in the short run we assume that the firmʹs fixed costs are87)Diff: 1Page Ref: 408/408Topic: Shutting Down in the Short RunLearning Outcome: Micro 13: Explain the relationship between production and profits under perfectcompetitionAACSB: Reflective Thinking28
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