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If a firm is indifferent between operating and shutting down in the short run, then it must be true that A

Economics

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If a firm is indifferent between operating and shutting down in the short run, then it must be true that

• A. total revenue equals fixed cost.
• B. total revenue equals total variable cost.
• C. total revenue equals total cost.
• D. fixed cost is zero.

Suppose Greg's Carpet Factory experiences economies of scale up to a certain point and constant returns of scale beyond that point. Its long-run average cost curve is most likely to be

• A. upward sloping to the right.
• B. L-shaped.
• C. horizontal.
• D. downward sloping to the right.

The period of time when a firm is unable to change all of inputs, or factors of production, is called the

• A. short run.
• B. accounting term.
• C. economic term.
• D. long run.