If a Firm Is Indifferent Between Operating and Shutting Down

question 131

Multiple Choice

If a firm is indifferent between operating and shutting down in the short run,then it must be true that

• A) total revenue equals total cost.
• B) total revenue equals total variable cost.
• C) total revenue equals fixed cost.
• D) fixed cost is zero.

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Definitions:

Otolith Organs

Structures in the inner ear that are responsible for detecting linear accelerations and head tilts, thereby contributing to balance and spatial orientation.

Vestibular System

The sensory system responsible for providing our brain with information about motion, head position, and spatial orientation; it also helps with balance.

Histamine

A compound involved in local immune responses, as well as regulating physiological functions in the gut and acting as a neurotransmitter.

Pain Sensation

The uncomfortable feeling often caused by intense or damaging stimuli, interpreted and processed by the nervous system.