Alpha is a perfectly competitive profit-maximizing firm with monthly variable cost of $4000 and monthly fixed cost of $6000. Monthly total revenue is $8000. Suppose that a portion of Alpha's fixed costs are recoverable and a portion are sunk. The choices below give different possible values for the recoverable fixed costs. For which of these should Alpha shut down in the short run? (choose any and all correct answers; incorrect choices will be penalized) Select one or more: а. 3000 b. 4500 С. 6000 d. 2000

Alpha is a perfectly competitive profit-maximizing firm with monthly variable cost of $4000 and monthly fixed cost of $6000. Monthly total revenue is $8000. Suppose that a portion of Alpha's fixed costs are recoverable and a portion are sunk. The choices below give different possible values for the recoverable fixed costs. For which of these should Alpha shut down in the short run? (choose any and all correct answers; incorrect choices will be penalized) Select one or more: а. 3000 b. 4500 С. 6000 d. 2000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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