A firm will shut down in the short run if
A) total fixed costs are too high.
B) total revenue from operating would not cover all costs.
C) total revenue from operating would not cover variable costs.
D) total revenue from operating would not cover fixed costs.

Question

Quizplus · Accepted Answer

A firm will shut down in the short run if the total revenue from operating would not cover variable costs, as continuing operations would lead to greater losses than just bearing the fixed costs.

A Firm Will Shut Down in the Short Run If