Question
Assume that this monthly situation will continue for some time, and you are in the short run. Fixed Costs$10,000 Variable Costs $5,000 Total Costs$15,000 Revenue$12,000
Assume that this monthly situation will continue for some time, and you are in the short run.
Fixed Costs$10,000
Variable Costs$5,000
Total Costs$15,000
Revenue$12,000
Total Costs$15,000
Profit/Loss($3,000)(A loss)
Should we shut down operations, or continue?Why or why not?
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Fundamentals of Managerial Economics
Authors: Mark Hirschey
9th edition
324584830, 978-0324588781, 032458878X, 978-0324584837
