In the Short Run, a Profit-Maximizing Firm Will Shut Down

question 121

True/False

In the short run, a profit-maximizing firm will shut down if its total revenue is greater than its variable costs.

---

Definitions:

Government Bonds

Debt securities issued by a government to support government spending, considered low-risk investments since they are backed by the taxing power of the issuing government.

Corporate Bonds

Debt securities issued by corporations to finance their operations, which pay interest to investors until maturity.

Available-For-Sale

A classification of securities which are not actively traded by the company, with changes in value reported in other comprehensive income.

Significant Influence

The power to participate in the financial and operating policy decisions of another entity, but not control those policies.