Baseball teams shut down in the winter.This is an example of
A) permanently leaving the industry because price is less than average fixed cost.
B) temporarily leaving the industry because price is less than average variable cost.
C) temporarily leaving the industry because price is less than average fixed cost.
D) permanently leaving the industry because price is less than average variable cost.

Question

Quizplus · Accepted Answer

Baseball teams shut down in the winter temporarily because the revenue (price) they would earn is less than the average variable cost of operating during that time.

Baseball Teams Shut Down in the Winter