If a Firm Operating in a Competitive Industry Shuts Down

question 505

Multiple Choice

If a firm operating in a competitive industry shuts down in the short run, it can avoid paying

• A)fixed costs.
• B)variable costs.
• C)total costs.
• D)The firm must pay all its costs, even if it shuts down.

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Definitions:

Tax

A tax represents an obligatory monetary fee or different kind of charge applied to a taxpayer by a government entity, intended to finance government operations and a range of public spending.

Sellers Receive

Refers to the revenue or payment that sellers get in exchange for providing goods or services in a market.

Tax

Mandatory financial contributions imposed by a government on individuals, corporations, or goods to fund public expenditures.