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Suppose That Carol Is the Owner of a Candle Factory

Question 103

Multiple Choice

Suppose that Carol is the owner of a candle factory.What will happen if the price of the candles being sold drops below the shut-down price?


A) Carol's total revenue will be equal to total fixed costs.
B) Carol's total revenue will exceed total variable costs.
C) Carol's total revenue will be less than total variable costs.
D) Carol's total revenue will be maximized.

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