Question: Which of the followings is FALSE about 'shutting-down' in the short run? No output is produced and no variable inputs are hired. The firm doesn't

Which of the followings is FALSE about 'shutting-down' in the short run? No output is produced and no variable inputs are hired. The firm doesn't have to pay for fixed inputs. In making the decision to shut down, the firm considers only the avoidable variable costs and ignores fixed costs. None of the above

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

$hello help me... 2 The Theory of the Firm (50 pts. ) Suppose Jason starts a firm making high-end basketball shoes. He has a production function Q(L, K) = AL K where Q is the number of units...

*- 'nll-' uni-I'v- 'p---uI--'II Reread pp. 247253 in the Browning and Zupan reading on long run supply and m Consider a highly competitive market where the firms all face the same costs. They start...

Lesson 3 Assignment Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The main difference between the short run and the long run is that:...

THE LONE-RUN INDUSTWV SUPPLVCLIHVE 247 that Mensa has some especially productive input that Densa does not have. For example. suppose that Mensa and Densa both purchase ofce space to begin their...

Problem 2: Pharmaceutical Firm f. If the government provides more machines to the firm, would the units of labour hired increase? A pharmaceutical firm produces vaccines using machines, K, and...

I. Increasing returns to scale in production means A) more than 10% as much of all inputs are required to increase output 10%. B) less than 3 times as much of all inputs are required to increase...

1. Which of the following is a variable cost? a. Interest payments b. Raw materials costs c. Sales taxes d. All of the above are variable costs. 2. The law of decreasing returns can explain the shape...

1. To say that a firm is a "price taker" means that Select one: a. consumers must pay the price that an individual firm is charging. b. the firm has no control over the market price, and thus needs...

refer to the pictures below View Go Tools Window Help 100% 47 Module 4-Production and cost Perfect competition - .._.pdf (page 1 of 4) ~ Q Question 3: (1 point) Suppose that a firm has a fixed plant...

These Q about Healthcare Economics True or False Questions 1. Hospitals are health care firms that earn revenues from selling some health care resources. 2. Physician clinics are health care firms...

The Louisiana Civil Code limits an innkeeper's liability for stolen property to $500 and only covers cash, jewelry, rare art items, furs, cameras, and negotiable instruments. While staying at the New...

The Rosrock Housing Association has two types of housing estate in the Rosburgh area (A and B). The following information is available: (i) The association has its own squad of painters who carry out...

In the typical enterprise , applications drive data and data supports applications . A True B False

You have been searching for a job for some time. One day, while searching through some online job postings, you see the following advertisement: Wanted: Persons seeking high paying corporate jobs in...

July 1, 1997, marked a historic date as Hong Kong reverted to political and economic control by mainland China. Despite uncertainties caused by this change, traditional Hong Kong stocks have...

You are the owner of Automated Systems, Inc., which sells Apple computers and related data processing equipment. You are currently trying to decide whether to continue selling the Apple computer line...

Other than it is a requirement for your major or your mom or dad is making you, why should you study accounting?