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:

Lazarus Theory

A psychological theory that suggests that the experience of stress is a result of an interaction between an individual's perception of a stressor and their ability to handle or cope with the stressor.

Physiological Reaction

A bodily response to an internal or external stimulus, involving complex biological processes and mechanisms.

James-Lange Theory

A theory of emotion proposing that emotions result from the perception of bodily reactions to stimuli, suggesting that we feel sad because we cry, angry because we strike.

Intrinsic Motives

Internal drives that inspire behavior based on internal rewards, satisfaction, or personal fulfillment.