Question

If a firm shuts down in the short run, then Group of answer choices its economic profits are zero. its losses are equal to its fixed costs. its operating profits are positive. it must be the case that its revenues from operating were less than its total costs.

Name: if a firm shuts down in the short run then group of answer choices its economic profits are zero its losses are equal to its fixed costs its operating profits are positive it must be the case that its
Uploaded: 2023-07-10T13:12:08-08:00
Duration: 1 min 28 s
Channel: Crystal Wang
Description: if a firm shuts down in the short run then group of answer choices its economic profits are zero its losses are equal to its fixed costs its operating profits are positive it must be the case that its

          If a firm shuts down in the short run, then
Group of answer choices

its economic profits are zero.

its losses are equal to its fixed costs.

its operating profits are positive.

it must be the case that its revenues from operating were less than its total costs.

Added by Ashley O.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Crystal Wang

07/10/2023

Step 1

If a firm shuts down in the short run, it does not necessarily mean that its economic profits are zero. Economic profits take into account both explicit and implicit costs, including opportunity costs. A firm might shut down if it is not covering these costs, even Show more…

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If a firm shuts down in the short run, then Group of answer choices its economic profits are zero. its losses are equal to its fixed costs. its operating profits are positive. it must be the case that its revenues from operating were less than its total costs.