Answer the following questions true (T) or false (F)
1. In the short run, a firm that incurs losses might choose to produce rather than shut down if the amount of its revenue is less than its fixed cost.
2. If a firm shuts down in the short run, it avoids its variable cost but not its fixed cost.
3. If a firm shuts down in the short run, its maximum loss equals the amount of its fixed cost.
1. FALSE
2. TRUE
3. TRUE
Economics
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Which of the following statements about elasticity of supply is true?
a. Elasticity of supply is always unity. b. Elasticity of supply is always zero. c. Elasticity of supply is always negative. d. Elasticity of supply is always positive.
Economics
In the textbook, economics is defined as the science of scarcity
Indicate whether the statement is true or false
Economics