Examlex

Solved

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.


Definitions:

Supplied Resources

The materials, labor, and other inputs provided for production or service delivery processes.

Production

The process of creating goods or services by combining labor, materials, and technology.

Committed Resources

Resources that have been designated for a specific project or purpose, often reflecting long-term business investments.

Activity-based Costing System

An accounting method that assigns costs to products or services based on the resources they consume.

Related Questions