If a Firm Shuts Down in the Short Run and Produces

question 114

Multiple Choice

If a firm shuts down in the short run and produces no output,its total cost will be _____

• A)equal to zero.
• B)equal to the variable cost.
• C)equal to the fixed cost.
• D)equal to only explicit costs.
• E)equal to the sum of implicit and explicit costs.

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Definitions:

Continuous Improvements

An ongoing effort to enhance products, services, or processes through incremental and breakthrough improvements.

3PL Provider

A third-party logistics provider that offers outsourced logistics services covering warehousing, transportation, and fulfillment services.

Organization

An entity, typically comprising a group of people, that works toward common goals or objectives, structured in such a way to facilitate management and operations.

Information Systems

Systems designed to collect, process, store, and distribute information to support decision making and control in an organization.