A firm will shut down in the short run if, for all positive levels of output,
A)its losses exceed its fixed costs.
B)its total revenue is less than its variable costs.
C)the price of its product is less than its average variable cost.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

A firm will shut down in the short run if its losses exceed its fixed costs, its total revenue is less than its variable costs, or the price of its product is less than its average variable cost.

A Firm Will Shut Down in the Short Run If