If a Firm Operating in a Competitive Industry Shuts Down

question 505

Multiple Choice

If a firm operating in a competitive industry shuts down in the short run, it can avoid paying

• A)fixed costs.
• B)variable costs.
• C)total costs.
• D)The firm must pay all its costs, even if it shuts down.

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Definitions:

Whig

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The debate or controversy surrounding the imposition of taxes on imported goods, which can affect trade relations, domestic industries, and economic policies.

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A southeastern US state, known for its shoreline of subtropical beaches and marshlike sea islands, and as the first state to secede from the Union prior to the Civil War.