Business, 25.04.2020 03:15 victoriay3

Should a firm shut down if its revenue is Requals$800 per week, its variable cost is VCequals$700, and its sunk fixed cost is Fequals$2,400? This firm should A. not shut down because total cost is greater than variable cost. B. not shut down because variable cost is less than revenue. C. shut down because total cost is greater than revenue. D. not shut down because revenue is positive. E. shut down because fixed cost is greater than revenue. Should a firm shut down if its revenue is Requals$800 per week, its variable cost is VCequals$1,200, and its sunk fixed cost is Fequals$2,400? This firm should A. shut down because fixed cost is greater than revenue. B. not shut down because total cost is greater than variable cost. C. not shut down because revenue is positive. D. shut down because varible cost is greater than revenue. E. shut down because total cost is greater than revenue. Over the long run, should a firm shut down if its revenue is Requals$100,000, and its variable cost is VCequals$200,000? This firm should A. shut down because revenue is declining. B. shut down because variable cost is less than revenue. C. shut down because variable cost is greater than revenue. D. not shut down because revenue is positive. E. not shut down because variable cost is not relevent.

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