A firm will shut down in the short run if the total revenue that it would get from producing and selling its output is less than its
A)opportunity costs.
B)fixed costs.
C)variable costs.
D)total costs.

Question

Quizplus · Accepted Answer

In the short run, a firm will shut down if total revenue is less than variable costs because it cannot cover these costs, even if fixed costs are sunk and must be paid regardless.

A Firm Will Shut Down in the Short Run If