A firm will shut down in the short run if

A) it is suffering a loss.
B) fixed costs exceed revenues.
C) variable costs exceed revenues.
D) total costs exceed revenues.

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a business.

Fixed Costs

Fixed costs refer to expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Total Costs

The aggregate amount of money spent on producing goods or services, covering both stable and changeable costs.