When Determining Whether to Shut Down in the Short Run

question 138

Multiple Choice

When determining whether to shut down in the short run, a competitive firm should ignore (i)
Fixed costs.
(ii)
Variable costs.
(iii)
Sunk costs.

• A)(iii) only
• B)(i) and (iii) only
• C)(ii) only
• D)(i), (ii), and (iii)

---

Definitions:

PHStat

An Excel-based statistical analysis software package designed to make the understanding and application of statistics easier for users.

Decision Nodes

Points within a decision-making process or decision tree where choices between different actions must be made.

Event Nodes

Elements in a graph or network representing moments or occurrences, often used in event-driven modeling or decision analysis.

Event Nodes

Points in a decision tree where outcomes of a particular decision or chance event are shown.