Firms that shut down in the short run are unable to avoid their:

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not vary with the level of production or output. These costs must still be paid even if the firm shuts down in the short run. Sunk costs, on the other hand, are costs that have already been incurred and cannot be recovered regardless of whether the firm shuts down or continues operating. Variable costs and marginal costs are costs that vary with the level of production or output, so they can be avoided if the firm shuts down in the short run.

Firms That Shut Down in the Short Run Are Unable