What are the profits or losses when a competitive firm shuts down in the short run? Group of answer choices it will realize a loss equal to its total fixed costs. its loss will be zero. it will realize a loss equal to its explicit costs. it will realize a loss equal to its total variable costs.

What are the profits or losses when a competitive firm shuts down in the short run? Group of answer choices it will realize a loss equal to its total fixed costs. its loss will be zero. it will realize a loss equal to its explicit costs. it will realize a loss equal to its total variable costs.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter26: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 5E

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Concept explainers

Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.

Question

What are the profits or losses when a competitive firm shuts down in the short run?

Group of answer choices

it will realize a loss equal to its total fixed costs.

its loss will be zero.

it will realize a loss equal to its explicit costs.

it will realize a loss equal to its total variable costs.

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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