A firm will shut down in the short run if the total revenue that it would...
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A firm will shut down in the short run if the total revenue that it would get from producing and selling its output is less than its
a. fixed costs.
b. opportunity costs.
c. total costs.
d. variable costs.
Homework Answers
Shutdown in short run for a firm occur when its revenue is less than the total cost or we can say that price is less than the unit cost .
Total cost is the sum of variable cost and fixed cost .
so fixed and variable and not the answers.
break even is the point where total revenue is equal to total cost .
If revenue us less compared to total cost then firm will start facing losses and ultimately shut down.
so the answer is option C
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A firm will shut down in the short run if the total revenue that
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