If a firm shuts down, it A) makes zero economic profit. B) incurs an economic loss equal to its total variable cost. C) incurs an economic loss equal to its total fixed cost. D) makes a normal profit. E) might make an economic profit, zero economic profit, or incur an ec loss.
If a firm shuts down, it A) makes zero economic profit. B) incurs an economic loss equal to its total variable cost. C) incurs an economic loss equal to its total fixed cost. D) makes a normal profit. E) might make an economic profit, zero economic profit, or incur an ec loss.
Chapter7: Perefect Competition
Section: Chapter Questions
Problem 8SQ
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Question
![If a firm shuts down, it
A) makes zero economic profit.
B) incurs an economic loss equal to its total variable cost.
C) incurs an economic loss equal to its total fixed cost.
D) makes a normal profit.
E) might make an economic profit, zero economic profit, or incur an economic
loss.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c6c3461-7492-496f-98bc-6ef78f2648e2%2F280958ca-9cf9-4a18-bc32-f884e78433b3%2F837u9dg_processed.png&w=3840&q=75)
Transcribed Image Text:If a firm shuts down, it
A) makes zero economic profit.
B) incurs an economic loss equal to its total variable cost.
C) incurs an economic loss equal to its total fixed cost.
D) makes a normal profit.
E) might make an economic profit, zero economic profit, or incur an economic
loss.
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