Answered: Should a firm shut down and why if its…

Should a firm shut down and why if its revenue is R=$ 1, 000. Its variable cost VC=$ 500 and its sunk fixed cost is F= $ 600. Its variable cost VC=$ 1, 500 and its sunk fixed cost is F= $ 500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

(c) Should a firm shut down and why if its revenue is R=$ 1, 000.

Its variable cost VC=$ 500 and its sunk fixed cost is F= $ 600.
Its variable cost VC=$ 1, 500 and its sunk fixed cost is F= $ 500.

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