Question
Should a firm shut down (and why) if its revenue is R = $1,000 per week, a. its variable cost is VC = $500, and
Should a firm shut down (and why) if its revenue is R = $1,000 per week,
a. its variable cost is VC = $500, and its sunk fixed cost is F = $600?
b. its variable cost is VC = $1,001, and its sunk fixed cost F = $500?
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Understanding The Law
Authors: Donald L Carper, John A McKinsey, Bill W West
5th Edition
0324375123, 9780324375121
