If a firm minimizes its losses by shutting down in the short run,then at all other output levels,
A)variable cost would exceed total revenue
B)total revenue exceeds total cost
C)marginal revenue exceeds marginal cost
D)total cost is zero
E)total revenue is zero

Question

Quizplus · Accepted Answer

When a firm shuts down in the short run, it means that the revenue it would earn from producing any output would not cover its variable costs, so at all other output levels, variable cost would exceed total revenue.

If a Firm Minimizes Its Losses by Shutting Down in the Short