If a Firm Shuts Down in the Short Run, Then

question 6

Multiple Choice

If a firm shuts down in the short run, then its:

• A)total revenue and total cost will fall to zero.
• B)profit will equal zero.
• C)economic loss will equal its fixed costs.
• D)economic loss will equal its variable costs.

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Definitions:

Ego Depletion

The theory that self-control or willpower draws upon a limited pool of mental resources that can be used up.

Physical Arousal

Pertains to the physiological responses of the body that prepare an individual for action, often associated with emotions, exercise, or sexual interest.

Ironic Processing

The psychological process where attempts to suppress certain thoughts make them more likely to surface.

Ironic Processing

A psychological phenomenon where efforts to suppress certain thoughts make them more likely to surface.