The Firm's Short-Run Decision to Shut Down
{"Image DocumentName": "The Firm\u2019s Short-Run Decision to Shut Down", "Image ImageDescription": "A firm will shut down (temporarily) if its variable costs exceed its total revenue, no matter what quantity it produces. Its fixed costs do not matter! This is because. Fixed costs are sunk costs in the short run. sunk costs are defined as costs that will have to be paid even if the firm shuts down. Therefore, FC cannot affect a firm\u2019s decision on whether to stay open or shut down. CHAPTER 14 FIRMS IN COMPETITIVE MARKETS.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}