If TR> TVCbut TR

[ETearle]

Question 1

If 
TR < 
TC, a firm would ________ in the short run and ________ in the long run.

◦ either operate or shut down; contract
◦ operate; contract
◦ shut down; expand
◦ shut down; contract

Question 2

If 
TR > 
TVC but 
TR < 
TC, a firm would ________ in the short run and ________ in the long run.

◦ operate; expand
◦ operate; exit the industry
◦ shut down; expand
◦ shut down; exit the industry

[lgoldst9]

Answer 1

either operate or shut down; contract

Answer 2

operate; exit the industry

[ETearle]

Thanks

[lgoldst9]

Welcome