They would operate because they make a profit of 500.

c) if you decide to shut down, explain how your loss would be minimized. (3 points)

A B C

Total revenue: 2,000 5,000 5,000

Total cost: 1,500 6,000 7,000

Total fixed cost 500 1,500 1,500

Total variable cost 1,000 4,500 5,500

Firm A:

a) calculate the firm's profit or loss.

b) explain why would you decide to operate, or shut down in the short-run using the operate or shut down rule

Firm B:

a) calculate the firm's profit or loss.

b) explain why would you decide to operate, or shut down in the short-run using the operate or shut down rule.

Firm C:

a) calculate the firm's profit or loss.

b) explain why would you decide to operate, or shut down in the short-run using the operate or shut down rule.