Which of the Following Is True If a Firm Shuts

question 65

Multiple Choice

Which of the following is true if a firm shuts down?
i.The price is less than minimum average variable cost.
ii.The firm is able to avoid an economic loss.
iii.The firm incurs a loss equal to its total variable cost.

• A) i only
• B) i and ii
• C) i and iii
• D) iii only
• E) ii only

Recognize the economic costs associated with inflation and how they affect behavior.

Understand how changes in the money supply and demand affect the price level.

Identify the factors that cause shifts in the money demand curve.

Explain monetary neutrality and its relevance in the long and short run.

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Definitions:

Nutritional Deficiencies

A state resulting from the lack of essential nutrients in the diet, leading to various health issues.

Lanugo

A soft, fine body hair that is sometimes present on newborns and people with eating disorders as a protective response to severe malnutrition.

Anorexia Nervosa

An eating disorder characterized by an obsessive fear of gaining weight, leading to severe restriction of food intake and distorted body image.

Overestimate

To assess something as being greater, larger, or more significant than it actually is.