A Firm Will Shut Down in the Short Run

question 13

Multiple Choice

A firm will shut down in the short run

• A) when price is below average variable costs at all levels of output.
• B) when price is below average fixed costs at all levels of output.
• C) when price is below average total costs at all levels of output.
• D) when price is below marginal costs at all levels of output.
• E) whenever the firm is losing money.

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Definitions:

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The process by which cancer cells spread from the location where they first formed to other parts of the body, forming new tumors.

Anesthetic

A medication that causes anesthesia.

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Sudden, uncontrolled electrical disturbances in the brain that can cause changes in behavior, movements, feelings, and levels of consciousness.

Blood Clotting

The process by which blood cells and substances combine to form a clot to prevent excessive bleeding.