Question $5$

$3$ pts

If a firm is earning negative profits it should shut down immediately if:

Revenue is greater than avoidable cost but less than non$-$avoidable costs.

Revenue is greater than variable costs; assume all fixed costs are avoidable.

Revenue is greater than variable costs; assume all fixed costs are non$-$avoidable.

Operating losses are smaller than non$-$avoidable fixed costs.