In the short run, a firm that is operating at a loss has two options. These options are
A) to go out of business or declare bankruptcy.
B) to reduce output or reduce its variable costs.
C) to shut down temporarily or continue to produce.
D) to adopt new technology or change the size of its physical plant.
C
You might also like to view...
When a country establishes trade restrictions, domestic producers of goods that compete with imported goods
a. always lose in the short run b. always gain in the long run c. may lose in the long run if protection stifles innovation and leaves the industry vulnerable d. may gain in the short run because wages will fall in that industry e. usually lobby against such restrictions
If U.S. real interest rates fall, international repercussions put _________________ pressure on the price level and __________________ pressure on Real GDP in the United States
A) upward; upward B) upward; downward C) downward; upward D) downward; downward