A firm will shut down in the short run if
A) it is suffering a loss.
B) fixed costs exceed revenues.
C) variable costs exceed revenues.
D) total costs exceed revenues.

Name: A firm will shut down in the short run if A) it is suffering a loss. B) fixed costs exceed revenues. C) variable costs exceed revenues. D) total costs exceed revenues.
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Question

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A firm will shut down in the short run if its variable costs exceed its revenues, as it cannot cover its variable costs through production.

A Firm Will Shut Down in the Short Run If