Which of the Following Is True If a Firm Shuts

question 65

Multiple Choice

Which of the following is true if a firm shuts down?
i.The price is less than minimum average variable cost.
ii.The firm is able to avoid an economic loss.
iii.The firm incurs a loss equal to its total variable cost.

• A) i only
• B) i and ii
• C) i and iii
• D) iii only
• E) ii only

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Definitions:

Subordinates

Individuals who are lower in rank or position in an organizational or hierarchical structure.

Short-Term Store

A temporary storage facility where information is modified to create a more meaningful experience.

Spreading Activation

A theory in cognitive science suggesting that thoughts and ideas in memory are connected; activation of one concept triggers nearby or related concepts.

Visuospatial Sketchpad

A rehearsal system that holds and analyzes visual and spatial information.