(Last Word) Temporary shutdowns of firms are most widespread when:

A) total fixed costs are rising across the economy.
B) the economy experiences recession.
C) firms have the ability to set prices for their output.
D) wage levels are falling.

Temporary shutdowns of firms are most widespread during a recession when demand for goods and services drop and firms experience a decrease in revenue. This decrease in revenue may make it difficult for firms to cover their fixed costs, leading to temporary shutdowns. Option A is incorrect because rising total fixed costs would make shutdowns more widespread, but this situation would apply only to certain industries or sectors, not to the economy as a whole. Option C is incorrect because the ability to set prices would not necessarily affect a firm's decision to shut down temporarily. Option D is also incorrect because falling wage levels would reduce a firm's costs, making it less likely to shut down temporarily.