They would operate because they make a profit of 500. c) if you decide to shut down,
Question:
They would operate because they make a profit of 500.
c) if you decide to shut down, explain how your loss would be minimized. (3 points)
A B C
Total revenue: 2,000 5,000 5,000
Total cost: 1,500 6,000 7,000
Total fixed cost 500 1,500 1,500
Total variable cost 1,000 4,500 5,500
Firm A:
a) calculate the firm's profit or loss.
b) explain why would you decide to operate, or shut down in the short-run using the operate or shut down rule
Firm B:
a) calculate the firm's profit or loss.
b) explain why would you decide to operate, or shut down in the short-run using the operate or shut down rule.
Firm C:
a) calculate the firm's profit or loss.
b) explain why would you decide to operate, or shut down in the short-run using the operate or shut down rule.
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain