If a Firm Shuts Down, It

question 166

Multiple Choice

If a firm shuts down, it

• A)will suffer a loss equal to its fixed costs.
• B)will produce nothing but must pay its variable costs.
• C)will produce nothing but must pay its fixed and variable costs.
• D)will earn enough revenue to cover its variable costs but not all of its fixed costs.

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Definitions:

British North America Act

Historical legislation passed in 1867, uniting three colonies into the Dominion of Canada, now known as the Constitution Act, 1867.

Constitution Act

A set of laws and principles that establishes the makeup and operation of a government.

Civil Code

A comprehensive set of laws that govern civil transactions and disputes, typically codifying areas such as contracts, property, and family law.

Common Law

A legal system based on judicial decisions and precedents rather than statutory laws.