Explain why a firm's shut-down decision does not incorporate the fixed costs of the production facility.
What will be an ideal response?
A firm's fixed costs are fixed no matter how many units of output the firm produces. Thus, the fixed costs of a production facility are not avoidable even when the firm is not using its production facility.
Economics
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Which of the following is not a determinant of an individual's marginal product?
A) talent B) money income C) experience D) educational level
Economics
Net wealth is _____
Fill in the blank(s) with the appropriate word(s).
Economics
Compare and contrast the arguments favoring active versus passive policymaking.
What will be an ideal response?
Economics
We expect the price elasticity of supply to be
A. positive. B. between -1 and +1. C. negative. D. zero.
Economics