Is it reasonable to conclude from reading the article that firms would achieve higher TSR by making acquisitions or stockpiling cash? Why or why not? What additional information would you need to properly assess the impact on shareholder wealth of the various capital deployment choices described in the article?
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Ответ:
D. total variable costs
Explanation:
A purely competitive firm should produce in the short run if its total revenue is sufficient to cover its total variable costs.
In short run, fixed cost had to be incurred even if it shuts down. So it should operate as long as price is greater than average variable cost.