The "shutdown loss"for a firm is:
A) zero.
B) equal to total fixed cost.
C) equal to total variable cost.
D) none of the above.

Question

Quizplus · Accepted Answer

The "shutdown loss" for a firm refers to the total fixed costs that a firm must pay even when it is not producing anything. Variable costs can be avoided if production is halted, but fixed costs must be paid regardless of the level of production.

The "Shutdown Loss"for a Firm Is