nick5514
nick5514
21.04.2020 • 
Business

Should a firm shut down if its weekly revenue is $1000, its variable cost is $800, and its fixed cost is $1200, of which $350 is avoidable if it shuts down? Why? The firm should A. produce because revenue of $1 comma 000 is greater than variable costs. B. shut down because revenue of $1 comma 000 is less than fixed costs. C. shut down because revenue of $1 comma 000 is less than avoidable costs. D. produce because revenue is positive. E. shut down because because variable costs are less than fixed costs.

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