If a Firm Is Indifferent Between Operating and Shutting Down

question 131

Multiple Choice

If a firm is indifferent between operating and shutting down in the short run,then it must be true that

• A) total revenue equals total cost.
• B) total revenue equals total variable cost.
• C) total revenue equals fixed cost.
• D) fixed cost is zero.

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Definitions:

Facial Expressions

Visible changes in the face that convey emotional states or reactions to situations.

Cognitive Perspective

An approach in psychology that emphasizes mental processes such as perception, memory, and problem-solving as the key to understanding behavior.

Human Reasoning

The cognitive process that involves thinking, understanding, learning, and remembering to make judgments and solve problems.

Clinical Psychologist

A mental health professional specializing in diagnosing and treating mental, emotional, and behavioral disorders through psychological techniques.