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)