If a firm shuts down, its
a. fixed costs remain unchanged.
b. revenue will fall to zero.
c. short-run variable costs will fall to zero.
d. All of the above are correct.
d
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If the economy of Gwondanaland is growing more rapidly than the economy of Japan, most likely
A. Japan has more current investment than Gwondanaland. B. Japan has more government spending than Gwondanaland. C. Japan spends more on capital goods than Gwondanaland. D. Gwondanaland has lower current consumption than Japan. E. Gwondanaland has lower current investment than Japan.
The core personal consumption expenditures price index excludes
A) food and energy prices. B) energy and housing prices. C) food and housing prices. D) housing and health care prices.
What is the main cause of high inflation rates in middle and low income countries?
a. Citizens save most of their income lowering aggregate demand. b. Citizens spend most of their income pushing up prices. c. The government pays for its budget deficits by printing money. d. The government pays for its budget surplus by printing money.
If firms are experiencing falling inventories, one can expect that firms will cut production
a. True b. False Indicate whether the statement is true or false