In the Short Run, If a Firm Shuts Down, Its

question 85

Multiple Choice

In the short run, if a firm shuts down, its total revenue is

• A)$0
• B)equal to its fixed costs
• C)greater than its variable costs
• D)greater than its fixed costs
• E)less than its variable costs

---

Definitions:

Incremental Changes

Small or minimal adjustments or changes that are made to improve a process, product, or system over time.

Replacement Projects

Projects undertaken by a company to replace old or obsolete assets in order to maintain or improve current operations.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and efficiency.

Corporate Tax Rate

A percentage of a corporation's profits taken as tax by the government.