Microeconomics: Principles, Applications, and Tools (8th Edition)

by O'Sullivan, Arthur; Sheffrin, Steven; Perez, Stephen

Published by Prentice Hall

ISBN 10: 0-13294-886-9

ISBN 13: 978-0-13294-886-9

Chapter 9 - Perfect Competition - Exercises - 9.3 The Firm's Shut-Down Decision - Page 229: 3.2

Answer

shut down total revenue variable cost

Work Step by Step

for the short-run, a firm can continue its unprofitable business if it is able to cover its variable cost. Total revenue (TR) = \$500 Variable cost (VC) = \$600 Since TR

Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.