If a Firm Shuts Down in the Short Run

question 146

Multiple Choice

If a firm shuts down in the short run,

• A)its loss equals zero.
• B)its loss equals its fixed cost.
• C)is makes zero economic profit.
• D)its total revenue is not large enough to cover its fixed cost.

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Definitions:

High Price

The condition of an item or service being sold at a rate significantly above average or expected market value.

Simultaneous Move Game

A scenario in game theory where all players make their decisions or moves at the same time, without knowledge of the other players' actions.

Bargain Hard

The process of negotiating with determination and strategic prowess to achieve favorable terms or prices in a deal or transaction.

Accommodate

To make a suitable adjustment or provide space and facilities for something or someone.