A Profit-Maximizing Firm Should Shut Down in the Short Run

Multiple Choice

A profit-maximizing firm should shut down in the short run if:

A) price is greater than marginal cost.
B) total revenue is less than total variable cost.
C) the firm is earning less than a normal rate of return.
D) the firm is not able to cover its overhead expenses.
E) marginal cost is higher than average cost.