When a firm shuts down,
A. its fixed costs drop to zero.
B. revenue will fall to zero.
C. short-run variable costs remain at current levels in the short run.
D. All of the responses are correct.
Answer: B
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Which one of the following could not have helped contribute to the recession of 1990– 1991?
a. less spending by state and local governments b. lower military spending by the federal government c. high levels of consumer debt d. lower tax rates e. expectations by consumers that the economy was in a downturn
There is no longer much debate among economists concerning the severity of and the solution to the problems in using the CPI to measure the cost of living
a. True b. False Indicate whether the statement is true or false
Congressman Smith and Congresswoman Johnson both consider themselves advocates for the national parks and are introducing different bills designed to benefit the parks. Congressman Smith's bill calls for an increase in the entrance fees. Congresswoman Johnson's bill calls for a decrease in the entrance fees. Which of the bills would be more effective at ensuring the quality of the national parks?
a. Congressman Smith's bill because it will reduce the overuse of the parks b. Congresswoman Johnson's bill because more visitors means more citizens will value and care for the parks c. Both bills would be equally effective. d. Neither bill would be effective.
If the fiscal year begins without a budget and Congress fails to pass a continuing resolution, then:
a. the federal government shuts down. b. the interest rate paid on the national debt automatically increases. c. federal agencies operate on the basis of the previous year's budget. d. the president has the right to raise the debt ceiling.