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The table shows the revenue and cost levels for two different firms. Firm 1 Firm 2 Total Revenue: $100,000 $100,000 Total Cost: $150,000 $160,000 Variable
The table shows the revenue and cost levels for two different firms. Firm 1 Firm 2 Total Revenue: $100,000 $100,000 Total Cost: $150,000 $160,000 Variable Cost: $110,000 $80,000 Given this information, which of the following statements is most accurate? Question content area bottom Part 1 A. Only firm 2 should shut down because it has the higher total costs.. B. Only firm 1 should shut down because only its variable costs are greater than its total revenue. C. Both firms should shut down because their total costs are greater than total revenue. D. Neither firm should shut down because their revenue is greater than either their fixed costs or their variable costs
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