If a firm shuts down in the short run, it will:
A. incur losses equal to its fixed costs.
B. have total revenue greater than total fixed costs.
C. reduce its losses to zero.
D. do this because P > AVC.
Answer: A
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Which of the following is an example of technological progress?
A) the invention of the air conditioner B) the invention of LCD televisions C) an increase in corn output resulting from genetic engineering D) all of the above
Pell grants are money given to students attending college. Pell grants are most closely similar to
A) public provision of a good. B) private subsidies given to producers of a good. C) vouchers given to consumers of a good. D) property rights assigned to consumers of a good. E) a subsidy given to the producer of a good.
Using the data in the above table, when output increases from 4 to 9 units, the marginal cost of one of those 5 units is
A) $4.00. B) $4.25. C) $5.00. D) $6.25.
The difference between a positive economic statement and a normative statement is that
a. a positive statement must be true; a normative statement is often not true b. a normative statement must be true; a positive statement is often not true c. a positive statement can be proved; a normative statement cannot d. a normative statement can be proved; a positive statement cannot e. a positive economic statement is a moral judgment; a normative economic statement is not a moral judgment