Asked by
Bhavya Oberoi
on Oct 12, 2024
Verified
Which statement is true?
A) Shutting down is a long run option.
B) Going out of business is a short run option.
C) Continuing to operate is a short run option.
Shutting Down
A short-term decision by a firm to cease production due to market conditions, typically when revenue does not cover variable costs.
- Identify the circumstances that determine a company's decision to either persist with its activities or cease operations in the short term.
Verified Answer
MN
Learning Objectives
- Identify the circumstances that determine a company's decision to either persist with its activities or cease operations in the short term.