When Determining Whether to Shut Down in the Short Run

question 523

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)

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Definitions:

Knee Joint

A crucial hinge joint connecting the thigh to the lower leg, facilitating movements like walking, jumping, and squatting.

Flexion

Flexion is a movement that decreases the angle between two body parts, such as bending an elbow or knee.

Subscapular Bursa

A fluid-filled sac located between the shoulder blade (scapula) and the rib cage that helps reduce friction during shoulder movements.

Shoulder Joint

A ball-and-socket joint that connects the upper arm to the torso, allowing a wide range of arm movements.