A Firm Will Shut Down in the Short Run If

question 298

Multiple Choice

A firm will shut down in the short run if

• A) it is suffering a loss.
• B) fixed costs exceed revenues.
• C) variable costs exceed revenues.
• D) total costs exceed revenues.

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Definitions:

Classical Conditioning

A learning process that involves associating an involuntary response and a stimulus.

Insight Learning

Insight learning is the process of learning how to solve a problem or do something new by applying what is already known, involving an 'aha' moment of understanding.

Generalization

The process of applying the principles learned from specific instances to broader and different situations.

Discrimination

In psychology, the ability to distinguish between different stimuli and respond appropriately according to their differences.