By Shutting Down, a Firm

question 40

Multiple Choice

By shutting down, a firm

• A)stops receiving revenue but continues to pay variable costs.
• B)stops receiving revenue and is stuck with its fixed costs.
• C)avoids its sunk costs as well as its variable costs.
• D)can avoid paying taxes on its previously earned profits.

---

Definitions:

Rabbit

A small mammal known for its long ears, large hind legs, and short fluffy tail, often found in various environments around the world.

Comparative Psychologists

Researchers who study the behavior and mental processes of non-human animals in comparison to humans, to understand psychological phenomena across species.

Cross-Cultural

Pertaining to or comparing the cultural differences, practices, and norms between different societies or ethnic groups.

Mental Illness

Health conditions involving changes in emotion, thinking, or behavior (or a combination of these), associated with distress or problems functioning in social, work, or family activities.