Firms That Shut Down in the Short Run Are Unable

question 181

Multiple Choice

Firms that shut down in the short run are unable to avoid their:

• A)fixed costs
• B)intermediate costs
• C)variable costs
• D)marginal cost

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Definitions:

Rate of Return

The appreciation or depreciation in an investment's value over a set period, articulated as a percentage of the investment's buying price.

EPS

Earnings Per Share, a financial ratio indicating the amount of profit attributable to each share of common stock.

Annual Dividends

Regular payments made by a company to its shareholders out of its profits or reserves on a yearly basis.

Rate of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's cost.