If the present value of all future profit is positive, then

A) the firm should remain operating, even if it earns negative profit in the short run.
B) the firm should shut down if it is earning a negative profit in the short run.
C) the firm should shut down if it cannot cover its fixed costs in the short run.
D) None of the above.

A

Economics

You might also like to view...

A key feature of the new growth theory is the assumption of

A) diminishing returns to labor. B) diminishing returns to knowledge. C) no diminishing returns to knowledge. D) no diminishing returns to labor.

Economics

The second-largest economy in the world belongs to

A. Germany. B. Japan. C. China. D. the United States.

Economics