Question
Should a firm shut down if its revenue is R = $1,000 per week, a. its variable cost is V C = $500 , and
Should a firm shut down if its revenue is R = $1,000 per week, a. its variable cost is V C = $500 , and its sunk fixed cost is F = $600? b. its variable cost is V C = $1001 , and its sunk fixed cost is F = $500? c. its variable cost is V C = $500 , and its sunk fixed cost is F = $800, of which is avoidable if it shuts down?
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Managerial Economics and Strategy
Authors: Jeffrey M. Perloff, James A. Brander
2nd edition
134167879, 134167872, 9780134168319 , 978-0134167879
