Asked by
Shernyee Harry
on Dec 11, 2024
Verified
If a profit-maximizing firm shuts down in the short run, it must be true that before the shutdown, at all positive output levels,
A) average total cost was less than average variable cost
B) fixed cost was greater than total revenue
C) variable cost was greater than total revenue
D) profit was zero
E) total cost plus total revenue was less than profit
Total Revenue
the overall amount of money generated by a firm from its sales activities before any costs or expenses are subtracted.
Variable Cost
Costs that change in proportion to the activity of a business such as the cost of raw materials.
- Identify the scenarios in which an entity must continue, scale down, or terminate its manufacturing processes in the short term.
Verified Answer
RL
Learning Objectives
- Identify the scenarios in which an entity must continue, scale down, or terminate its manufacturing processes in the short term.