In the Short Run, If a Firm Shuts Down, Its

question 85

Multiple Choice

In the short run, if a firm shuts down, its total revenue is

• A)$0
• B)equal to its fixed costs
• C)greater than its variable costs
• D)greater than its fixed costs
• E)less than its variable costs

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Definitions:

Indigenous Production

The process of manufacturing goods within a particular region or territory using local resources and labor.

Service Economy

An economic phase in which the service sector generates more wealth than the manufacturing sector of the economy, characterized by a high volume of services relative to goods.