In Analyzing the Decision to Shut Down in the Short

question 248

Multiple Choice

In analyzing the decision to shut down in the short run we assume that the firm's fixed costs are

• A)implicit costs.
• B)capital costs.
• C)nonmonetary opportunity costs.
• D)sunk costs.

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Definitions:

ADP

Adenosine diphosphate, a molecule involved in energy transfer within cells.

Fermentation

A metabolic process that converts sugar to acids, gases, or alcohol in the absence of oxygen.

Gravity

A natural phenomenon by which all things with mass or energy are brought toward one another, including objects ranging from subatomic particles to planets and stars.

Energy

The capacity to do work or produce change, present in many forms such as kinetic, thermal, electrical, and chemical.