Ch11_12_part2_Practice_Problems

I only b iii only c i and iii only d i

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Unformatted text preview: by increasing production to Q4. c. profit is still maximized at a production level of Q3. d. average revenue exceeds marginal revenue at a production level of Q4. 44. A profit- maximizing firm will shut down in the short run when a. price is less than average variable cost. b. price is less than average total cost. c. average revenue is greater than marginal cost. d. average revenue is greater than average fixed cost. 45. In the long run, all of a firm's costs are variable. In this case the exit criterion for a profit- maximizing firm is...
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This document was uploaded on 04/06/2014 for the course ECON 1 at UCLA.

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