A Firm Will Shut Down in the Short Run If

question 424

Multiple Choice

A firm will shut down in the short run if the total revenue that it would get from producing and selling its output is less than its

• A)opportunity costs.
• B)fixed costs.
• C)variable costs.
• D)total costs.

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Definitions:

Purchasing Power

The purchasing power of a currency, measured by the quantity of goods or services a single unit can acquire.

Longest Expansion

A period characterized by sustained economic growth and expansion, often measured by GDP growth, without a recession.

World War II

A global conflict that occurred from 1939 to 1945, involving most of the world's nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.

Disinflation

A decrease in the rate of inflation, indicating a slowdown in the rate at which prices for goods and services increase.