Author Question: What is the shut-down rule for any firm?[br][br][b][color=#7BCCB5]Question ... (Read 58 times)

nmorano1 · **on:** Jun 30, 2018

What is the shut-down rule for any firm?

Question 2

Along an indifference curve for goods X and Y, the vertical and horizontal axes measure the:
a. prices of X and Y.
b. total utilities of X and Y.
c. quantities of X and Y.
d. marginal utilities of X and Y.

kaillie · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Any firm should shut down if losses are greater than total fixed costs (or when price is less than average variable cost; or when total revenue is less than total variable cost) in order to minimize losses in the short run.

Answer to Question 2

c