In the short run
A) all firms that earn a loss will shut down.
B) if current firms are earning a profit, new firms will enter the industry.
C) firms act to minimize losses or maximize profits.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

In the short run, firms focus on minimizing losses or maximizing profits based on their current operational and market conditions. Choices A and B describe scenarios that may occur in the long run rather than the short run.

In the Short Run