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    Managerial Economics and Strategy Study Set 2
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    Exam 7: Firm Organization and Market Structure
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    By Shutting Down, a Firm
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By Shutting Down, a Firm

Question 40

Question 40

Multiple Choice

By shutting down, a firm


A) stops receiving revenue but continues to pay variable costs.
B) stops receiving revenue and is stuck with its fixed costs.
C) avoids its sunk costs as well as its variable costs.
D) can avoid paying taxes on its previously earned profits.

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