Which of the Following Does Not Apply to a Firm

question 41

Multiple Choice

Which of the following does not apply to a firm that has shut down in the short run?

• A)Variable cost is zero.
• B)Total revenue is zero.
• C)Total cost exceeds total revenue.
• D)Total cost is zero.
• E)Fixed cost is positive.

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Definitions:

Improved Product

A product that has been enhanced in terms of quality, features, or performance compared to its previous versions.

Obsolete

Refers to products, technologies, or methods that are no longer used because newer ones have replaced them.

Highly Valued

Regarded with great importance, significance, or appreciation by individuals or society.

Competitive Price-Searcher Market

A market structure where firms have some power to set prices because their products are differentiated, but must consider the prices of competitors.