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:

Terror Management Theory

A psychological concept suggesting that fear of death motivates individuals to adhere to cultural beliefs and values, providing a sense of immortality through symbolic or literal means.

Approach Motivation

The drive or inclination to move towards, engage in, or achieve a positive outcome or reward.

Empathy

The ability to understand and share the feelings of another.

Power Distance

Variation in the extent to which members of a culture or an organization (especially those with less power) accept an unequal distribution of power.