In the long run, all of a firm's costs are variable. In this case the exit criterion for a profit-maximizing firm is to shut down if
a. price is less than average total cost.
b. price is greater than average total cost.
c. average revenue is greater than average fixed cost.
d. average revenue is greater than marginal cost.
a
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Rebecca can stitch 6 shirts in a day while Eliza can stitch only 5 shirts in a day. Rebecca can stitch 2 trousers in a day while Eliza can stitch 3 trousers in a day. Which of the following is true in this case?
A) Rebecca has a comparative advantage in stitching trousers. B) Eliza has an absolute advantage in stitching trousers. C) Rebecca has an absolute advantage in stitching trousers. D) Eliza has a comparative advantage in stitching shirts.
What is an outside director?
A) the CEO that is selected by the corporation's board of directors B) a member of the board of directors who does not have a direct management role in the firm C) a member of a corporate board of directors that is also a manager of the business D) a board of director chair who has been in the job for less than one year