Figure 12-9 Figure 12-9 Shows Cost and Demand Curves

question 236

Multiple Choice

Figure 12-9 Figure 12-9 shows cost and demand curves facing a profit-maximizing, perfectly competitive firm.
-If a firm shuts down in the short run,

• A) its loss equals zero.
• B) its loss equals its fixed cost.
• C) it makes zero economic profit.
• D) its total revenue is not large enough to cover its fixed cost.

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Definitions:

Financial Management

The practice of planning, directing, and controlling financial activities such as procurement and utilization of funds of an enterprise.

HR Management

The practice of recruiting, managing, and developing an organization's employees to maximize their performance.

Operations Management

The administration of business practices to create the highest level of efficiency possible within an organization, focusing on converting materials and labor into goods and services as effectively as possible.

Customer Relationship Management

A strategy for managing an organization's interactions with current and potential customers using data analysis about customers' history.