2.4 Should a firm shut down if its revenue is R = +1,800 per week, a. its...

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2.4 Should a firm shut down if its revenue is R = +1,800 per week,

a. its variable cost is VC = +1,200, and its sunk fixed cost is F = +800?

b. its variable cost is VC = +1,900, and its sunk fixed cost is F = +200?

c. its variable cost is VC = +1,200, and its fixed cost is $800, of which $700 is avoidable if it shuts down?

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Managerial Economics And Strategy

ISBN: 9780135640944

2nd Global Edition

Authors: Jeffrey M. Perloff, James A. Brander

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