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.
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Question

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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