Answered
A firm sells 300,000 units per week.It charges $ 35 per unit,the average variable costs are $40,and the average costs are $55.In the short run,the firm should
A) Shut-down as the firm is making a loss of $15 million per week
B) Shut-down as the firm cannot cover the variable costs
C) Shut down because the price is lower than average cost
D) None of the above
On Sep 28, 2024