In regard to the relation between output and costs in the short-run, a decline in the

Which of the following measures of profits is most likely necessary for a firm to stay in business in the long run?

A.normal

B.economic

C.accounting

Which of the following most accurately describes the relationship between the average total cost (ATC) curve and the average variable cost (AVC) curve? The vertical distance between the ATC and AVC curves:

A)increases as output increases.

B)decreases as output increases.

C)increases and then decreases as output increases.

A firm realizes that it is producing more than the profit maximizing level of output and makes a short-run decision to decrease its output. Which of the firm cost measures is least likely to decrease as a result?

A)Average variable cost.

B)Average fixed cost.

C)Marginal cost.

Marginal revenue is equal to price for firms operating in which market structure(s)?

A)Both perfect competition and imperfect competition.

B)Neither perfect competition nor imperfect competition.

C)Perfect competition only.