Multiple Choice
If the present value of all future revenue is positive, then
A) the firm should remain operating, even if it earns negative profit in the short run.
B) the firm should shut down if it is earning a negative profit in the short run.
C) the firm should shut down if it cannot cover its fixed costs in the short run.
D) Unable to determine with the information given.
Correct Answer:
Verified
Correct Answer:
Verified
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