Asked by
Kayla Francois
on Nov 04, 2024
Verified
If ________, a firm would shut down in the short run and exit the industry in the long run.
A) TR > TVC but TR < TC
B) TR = TC
C) TR > TFC
D) TR < TVC
Shut Down
In economics, a short-run decision not to produce anything during a specific period because of current market conditions.
Short Run
A period in which at least one factor of production is fixed, and firms can adjust only to a limited set of variables.
TR < TVC
This expression denotes a situation where Total Revenue (TR) is less than Total Variable Costs (TVC), indicating a loss-making scenario for the business.
- Identify the instances that necessitate a business's decision to stay operational, augment, diminish, or close throughout brief and extended periods.
Verified Answer
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Learning Objectives
- Identify the instances that necessitate a business's decision to stay operational, augment, diminish, or close throughout brief and extended periods.