If a purely competitive firm shuts down in the short run,

A) its loss will be zero.
B) it will realize a loss equal to its total variable costs.
C) it will realize a loss equal to its total fixed costs.
D) it will realize a loss equal to its explicit costs.

Shut Down

A short-term decision by a firm to cease operations because operating costs exceed revenue, usually considered in the context of price being less than variable costs.

Total Fixed Costs

A company's expenses that do not change with the level of production or services, such as rent, salaries, and insurance premiums.