A Firm Will Shut Down in the Short Run If

question 80

Multiple Choice

A firm will shut down in the short run if:

• A) it is suffering an economic loss
• B) average total costs exceed average total revenues
• C) marginal revenue is zero
• D) variable costs exceed revenues

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Definitions:

Diagnostic Criteria

A set of standards and conditions that must be met for a particular disease or condition to be diagnosed.

Psychological Characteristics

Psychological characteristics encompass the various traits, behaviors, and cognitive patterns that describe an individual's mental processes and personality.

Behavior Characteristics

Traits or patterns of action or conduct that are typical of a person or group and can be observed in a specific context.

Physiological Characteristics

The biological traits or features of organisms, including humans, which relate to the functions of the body systems.