If the Price Were $60,this Firm Would _________ in the Short

question 168

Multiple Choice

If the price were $60,this firm would _________ in the short run and __________ in the long run.

• A)shut down;stay in business
• B)shut down;go out of business
• C)operate;stay in business
• D)operate;go out of business

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Definitions:

FICA Tax Rates

The percentage rates set by law that determine the amount of Social Security and Medicare taxes that must be withheld from employees' paychecks and matched by employers.

Employer's Taxes

Taxes that employers are required to pay on behalf of their employees, such as social security and Medicare taxes in the United States.

Gross Pay

The total amount of money earned by an employee before any deductions or taxes are taken out.

Net Pay

Gross earnings, less deductions. Net pay, or take-home pay, is what the worker actually takes home.