If a Firm Operating in a Competitive Industry Shuts Down

question 505

Multiple Choice

If a firm operating in a competitive industry shuts down in the short run, it can avoid paying

• A)fixed costs.
• B)variable costs.
• C)total costs.
• D)The firm must pay all its costs, even if it shuts down.

---

Definitions:

Base

A substance that accepts protons from acids according to the Brønsted-Lowry acid-base theory and has a high pH in solution.

Sugar

A sweet-tasting carbohydrate that is used as a source of energy in living organisms.

Protein

Large biomolecules consisting of one or more chains of amino acids, crucial for the structure, function, and regulation of the body's cells, tissues, and organs.

Amylase

An enzyme that catalyzes the breakdown of starches into sugars, playing a critical role in the digestive process.