1 .A store manager says: " If my rent goes up next month, my marginal cost will skyrocket." What is wrong with this statement?

2 a. Fitness ABC announces that it will temporarily shut down during as long as restrictions due to COVID 19 are in place. It is not worthwhile continuing day to day operations, shutting down minimizes losses. Would this firm earn enough revenue to cover its variable costs? Comment.

b. If losses persist, what would a competitive firm do in the long run?