If a Firm Shuts Down, Its

question 206

Multiple Choice

If a firm shuts down, its

• A)fixed costs remain unchanged.
• B)revenue will fall to zero.
• C)short-run variable costs will fall to zero.
• D)All of the above are correct.

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Definitions:

Dictator Game

An experimental game in economics that tests individuals' behavior towards altruism and fairness, where one player (the "dictator") decides how to split an endowment between themselves and another player.

Market Transactions

The processes involved in buying or selling goods and services in a market between buyers and sellers.

Ultimatum Game

A game in experimental economics in which two players decide on how to divide a sum of money; one player proposes a division, and the other can accept or reject it.

Dictator Game

An experimental game in economics where one player (the "dictator") determines how to split an endowment between themselves and another player.