Question: A firm is deciding whether to operate or shut down in the short-run. They have provided you with the following information: TC=10,000 VC=2,000 FC=8,000 P=25

A firm is deciding whether to operate or shut down in the short-run. They have provided you with the following information:

TC=10,000

VC=2,000

FC=8,000

P=25

Q=100

List of abbreviations:

  • TC=Total Cost
  • VC=Total Variable Cost
  • FC=Total Fixed Cost
  • P=Price
  • Q=Quantities Sold

What should the firm do?

Continue to Operate or Shut Down?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Billy Adams, controller for Westcott, Inc., prepared the following budget for manufacturing costs at two different levels of activity for 2010: During 2009, Westcott employees worked a total of...

Q:

Question 1 Your firm Books and Pencils LLP (BP), an internationally renowned ICAEW Chartered Accountants firm, has undertaken the non-assurance engagement of Wood Works Plc (WW). The company is a...

Q:

control Hiversi- capital The ex- ategies enting oosely of us- hemes evel of 0-7. Which elements of the M-form structure (the board of directors, the office of the CEO, corporate staff, division...

Q:

8-7. Which elements of the M-form structure (the board of directors, the office of the CEO, corporate staff, division general managers, shared activity managers) should be involved in the following...

Q:

Hi can u pls help me to find out the auditing MCQ questions answer .I attach a file.please.My email id is (ruhin_1986@yahoo.com) 1 Marks: 1 When an auditor calculates the gross margin as a percent of...

Q:

*QUANT analysis* please help!!! Which of the following is Not a major area of corporate finance? O Capital Budgeting Capital Assessment O Working Capital Management O Capital Structure O All of these...

Q:

Your firm is looking into expanding regionally. The firm is deciding whether to open a brand-new warehouse in Bridgeport, CT to simplify future distribution in the Northeast. The warehouse would need...

Q:

MUST SHOW CALCULATIONS TO RECEIVE CREDIT. 1. Lucy invested $10,000 at the rate of 12%. According to the rule of 72, it would take ______ years for her money to double a) 4 b) 5 c) 6 d) 7 2. A...

Q:

please explain and show formulas what do you mean ? all the information is there You are the sole bondholder in a firm that will be liquidated at its market value next year. For example, if the...

Q:

question E obcswebdav/pid-5733223-dt-content-rid-46416731.1/courses/1208-BUS-365-SEC07-91900/ Question 3 You are the sole bondholder in a firm that will be liquidated at its market value next year....

Q:

Which of the following is Not a major area of corporate finance? O Capital Budgeting O Capital Assessment O Working Capital Management O Capital Structure O All of these are major areas of corporate...

Q:

Using the internet, find an example of a fraud scheme that has been reported in the news and answer the following questions: List the reference(s) that you used. Name of the company/organization...

Q:

08:54 From the following data set calculate the 90% confidence interval; 7.0710, 7.0610, 7.0750, 7.0550, 7.0570, 7.0590 a. 7.0545 to 7.0715 b. 7.0563 to 7.0697 000 Verizon C. 7.0567 to 7.0693 d....

Q:

Write the expression in power form ax ^ b for numbers a and b . 4 8 / ( 2 x 2 ) ^ 3

Q:

Question 2 A Gaussian random variable X with mean of 0 and a variance of 1. What is the probability that |X|>0.83 ? Not yet answered Select one: Marked out of a. 0.0456 1.00 b. 0.4066 P Flag question...

Q:

fx(xla

Q:

MCB bank quote 12.56/52% for 150 million PIB 10 years to Askari Bank for forward 60 days Askari bank yours to MCB. Other Information given below: Issue Date 03-Sep-2013 Maturity Date 03-Sep-2023...

Q:

Question 15 5 red balls and 3 yellow are in a box. Two balls are picked at random. What is the probability that both are of Not yet the same color? answered Marked out of 1.00 round your answer to 4...

Q:

Write a program to wish happy birthday to a student. Firstly, take today month and day as an input and secondly take birthday as an input in the form of month and day. If the input day and month...

Q:

Do not come to the conclusion too quickly

Q:

Engage everyone in the dialogue

Q:

1. Given your basic mental state, i.e. the state you often return to. Give this state a name that you recognize and that is easy to remember, such as irritability, frustration, joy, etc. Also give...