A firm's monthly revenue is $20,000, its variable cost is $15,000, and its fixed cost $8,000, of which $2,000 is avoidable if it shuts down. The firm should Group of answer choices not shut down because its revenue is greater than its avoidable cost. shut down because its revenue is less than its avoidable cost. not shut down because its revenue is greater than its unavoidable cost. shut down because its revenue is less than its unavoidable cost.

A firm's monthly revenue is $20,000, its variable cost is $15,000, and its fixed cost $8,000, of which $2,000 is avoidable if it shuts down. The firm should Group of answer choices not shut down because its revenue is greater than its avoidable cost. shut down because its revenue is less than its avoidable cost. not shut down because its revenue is greater than its unavoidable cost. shut down because its revenue is less than its unavoidable cost.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 1.9CE: How many shuts do you recommend selling per color per day? What then is your recommended dollar...

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