If a Firm Shuts Down in the Short Run It

question 41

Multiple Choice

If a firm shuts down in the short run it will

• A)break even.
• B)declare bankruptcy.
• C)suffer a loss equal to its variable costs.
• D)suffer a loss equal to its fixed costs.

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Definitions:

Budget Constraint

A representation of all the combinations of goods and services that a consumer can afford to buy at given prices within their income level.

Apples

A type of fruit that is cultivated worldwide and comes in various colors, including red, green, and yellow, known for its crisp texture and sweet to tart flavor.

Bananas

A common fruit known for its elongated shape and soft, starchy interior, often consumed as a snack or used in cooking.

Utility Function

A mathematical representation of how a consumer ranks different bundles of goods according to the levels of satisfaction they provide.