1 The short run is the length of time it takes all fixed costs to become
(Click to select) a)total cost b) total revenue C) variable costs
2 The short run is the length of time it takes all fixed costs to become
(Click to select) a)total cost B) total revenue C) variable costs
3 The short run is the length of time it takes all fixed costs to become
(Click to select) a) total cost b) total revenue C) variable costs
4 In the long run, firms must decide to go out of business if:
Multiple Choice
- If the firm’s total costs exceed the total revenue
- If the firm’s total revenue exceeds the cost
- If only fixed costs can be met
- If only variable costs can be met
- 5 If the firm decides to shut down when total revenue is less than variable costs, what will happen?
Multiple Choice
- the output will be zero, but the firm must still meet fixed costs
- the output will continue to increase with zero costs
- the output will be minimized
- the output will remain at a constant rate of growth .
- 6 Assume a firm’s total revenue is $5 billion, its fixed costs are $3 billion, and its variable costs are $1.5 billion.(a) What does it do in the short run? (Click to select) a)Operate b) Shut down (b) What does it do in the long run? (Click to select) a) Go out of business b) Stay in business
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