What is the shut-down rule for any ...

[nmorano1]

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]

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

[nmorano1]

Thanks for the timely response, appreciate it

[deja]

Excellent