Asked by
Jaiyele Hampton
on Nov 04, 2024
Verified
If TR > TC, a firm would ________ in the short run and ________ in the long run.
A) operate; expand
B) operate; contract
C) shut down; expand
D) shut down; contract
TR
Total Revenue, the total income received by a firm from sales before any expenses are subtracted.
TC
Total cost, which encompasses all the expenses associated with the production of goods or services, including both fixed and variable costs.
- Contrast the decision-making approaches for businesses in the short run versus the long run within perfectly competitive sectors.
- Evaluate how shifts in market prices influence the enterprise's manufacturing levels and financial gains.
Verified Answer
JG
Learning Objectives
- Contrast the decision-making approaches for businesses in the short run versus the long run within perfectly competitive sectors.
- Evaluate how shifts in market prices influence the enterprise's manufacturing levels and financial gains.