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(Last Word) Oil Wells and Seasonal Resorts Will Often Shut

Question 66

Multiple Choice

(Last Word) Oil wells and seasonal resorts will often shut down temporarily because


A) prices for their output temporarily fall below their average variable costs of production.
B) fixed costs temporarily rise, making production unprofitable.
C) variable costs for pumping oil and operating resorts fluctuate significantly.
D) government regulations require seasonal shutdowns for maintenance purposes.

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