Question
Suppose you are given the following information about a perfectly competitive firm in the short-run: Total Revenues$750,000 Fixed Costs$800,000 Variable Costs$450,000 Calculate economic profit under
Suppose you are given the following information about a perfectly competitive firm in the short-run:
Total Revenues$750,000
Fixed Costs$800,000
Variable Costs$450,000
Calculate economic profit under each scenario:
a)the firm shuts down
b)the firm continues to operate
Accordingly, should the firm shut down or continue operating, even in the presence of economic losses?
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Managing in a Global Economy Demystifying International Macroeconomics
Authors: John E. Marthinsen
2nd edition
128505542X, 978-1305176157, 1305176154, 978-1285055428
