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:

Range

The difference between the highest and lowest values in a set of data.

Magnitude

The size, extent, or importance of something, often quantitative in nature.

Perfect Positive Relationship

A correlation in which one variable increases exactly as the other one increases, represented by a correlation coefficient of +1.

Correlation Coefficient

A numerical measure that quantifies the strength and direction of a relationship between two variables.