If a firm cannot earn profits in the short run,it will shut down.

Name: If a firm cannot earn profits in the short run,it will shut down.
Brand: Quizplus
Rating: 4.7 (37 reviews)

Question

Quizplus · Accepted Answer

A firm will operate at a loss if the loss incurred from production is less than the loss incurred from shutting down.Even if the firm shuts down,it still must pay its fixed costs because,in the short-run,going out of business is not an option.

If a Firm Cannot Earn Profits in the Short Run,it