Asked by
Randy Santiago IRizarry
on Nov 04, 2024Verified
When a firm shuts down in the short run, it breaks even.
Breaks Even
The point at which total costs and total revenue are equal, resulting in no net loss or gain.
Short Run
A time period during which at least one input, like plant size or capital, is fixed and cannot be changed, focusing on immediate operational decisions.
- Recognize the relationship between a firm's operational decisions in the short and long run.
Verified Answer
LZ
Learning Objectives
- Recognize the relationship between a firm's operational decisions in the short and long run.