Which of the Following Is True If a Firm Shuts

question 34

Multiple Choice

Which of the following is true if a firm shuts down? i. The price is less than minimum average variable cost.
Ii) The firm is able to avoid an economic loss.
Iii) The firm incurs a loss equal to its total variable cost.

• A) i only
• B) i and ii
• C) iii only
• D) ii only
• E) i and iii

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Definitions:

Feedback

Data on responses to a product or an individual's task execution, utilized as grounds for enhancement.

Negative

Characterized by the absence rather than the presence of a certain quality, or expressing or containing a denial or refusal.

Positive

Defined by having certain features or qualities, rather than lacking them.

Choices

The act of selecting between two or more possibilities.