Will a firm shut down in the short run
Problem: Will a firm shut down in the short run if it is losing money, even though it can cover its fixed costs? Explain why this is true or false and include graph(s).
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A. IN THE SHORT RUN -- would you agree with your boss that the company should close up shop? Why or why not? B. IN THE LONG RUN -- would you agree with your boss that the company should close up shop? Why or why not?
Will a firm shut down in the short run if it is losing money, even though it can cover its fixed costs? Explain why this is true or false and include graph(s).
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