If a firm shuts down in the short run,
a. it exits the industry
b. losses would equal its variable costs
c. losses would equal its fixed costs
d. profits would be zero
e. losses would equal to zero
C
You might also like to view...
The ________ due to a countercyclical policy during a recession is ________ when wages are downwardly rigid than when wages are flexible
A) increase in employment; lower B) increase in interest rates; lower C) increase in employment; higher D) increase in taxes; higher
Suppose the price level falls. The result is that the:
a. aggregate supply curve would shift to the right. b. aggregate supply curve would shift to the left. c. general price level would rise causing a movement up the aggregate demand curve. d. aggregate demand curve would slope downward because of the real balances effect.