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Randy Santiago IRizarry
on Nov 04, 2024

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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.
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LZ
Larisa ZaitovNov 04, 2024
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