In the Short Run, If a Firm Shuts Down It

question 162

True/False

In the short run, if a firm shuts down it avoids its variable cost but not its fixed cost.

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Definitions:

Direct Marketing

A form of advertising which allows businesses to communicate straight to the consumer through various media.

E-mail

A method of exchanging digital messages over the Internet between people using electronic devices.

Telemarketing

The practice of promoting products or services through telephone calls to potential customers.

Business Expenditures

The financial outflows or expenses incurred by a business in its operational activities, including costs of goods sold, salaries, and overhead.