A Firm That Has Not Shut Down in the Short

question 40

True/False

A firm that has not shut down in the short run will not shut down in response to a decrease in the marginal costs.

---

Definitions:

Firm

A business organization, such as a corporation or partnership, that sells goods or services in exchange for money.

Cross-Price Elasticity

A measure of how the demand for one good responds to changes in the price of another good.

Complements

Goods or services that are often used together, where the consumption of one enhances the consumption of the other.

Negative

In finance, can refer to negative interest rates or investments; in psychology, relates to negative emotions or attitudes.