A firm will shut down in the short run if revenue is not sufficient to cover its variable costs of production.

Name: A firm will shut down in the short run if revenue is not sufficient to cover its variable costs of production.
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Question

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In the short run, if a firm's total revenue does not cover its variable costs, it will shut down because it cannot cover the costs directly associated with production, leading to a minimization of losses by not operating.

A Firm Will Shut Down in the Short Run If