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

---

Definitions:

Superior Trial Court

A high-level court of law that has the authority to hear both civil and criminal cases, including appeals from lower courts.

Courts of Equity

Courts that decide cases on the basis of fairness and justice, applying principles of equity rather than strict legal rules.

Provincial Court

A provincial court is a lower-level court in Canada dealing with less serious criminal offences, family law matters, and other regulatory offences.

ADR

Alternative Dispute Resolution, a range of processes such as mediation and arbitration used to resolve disputes without going to court.