Assume a Firm Closes Down in the Short Run and Produces

question 160

Multiple Choice

Assume a firm closes down in the short run and produces no output. Under these conditions,

• A)TVC is positive, but TFC and TC are zero.
• B)TFC is positive, but TVC and TC are zero.
• C)TFC and TC are positive, but TVC is zero.
• D)TFC, TVC, and TC will all be positive.

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Definitions:

Human Capital

The total capabilities, knowledge, and non-material assets belonging to individuals that have the capability to produce monetary value for the people themselves, their employers, or their surrounding community.

External Demand

The desire or need for products or services that comes from outside an organization, influencing production levels, marketing strategies, and business growth.

Internal Human Capital

The knowledge, skills, and abilities that employees possess, which are utilized and valued within their current organization.

HR Policies

Guidelines and structured plans created by an organization to manage its human resources and provide fair treatment to employees.