Which of the following does not characterize a perfectly competitive firm that has shut down in the short run?

Question

Quizplus · Accepted Answer

If a perfectly competitive firm has shut down in the short run, it means that the firm is not able to cover its variable costs with its total revenue, and incurring a loss. However, fixed costs must still be paid even if the firm shuts down, so fixed cost is positive. Option E, which says fixed cost is zero, is not a characteristic of a perfectly competitive firm that has shut down in the short run.

Which of the Following Does Not Characterize a Perfectly Competitive