QUESTION 1If your fixed costs are $10,000, your variable costs are $10,000, and your revenue is $15,000, what do you do?You should shut down the firm.O You should shut down in the long run, but stay open in the short run.You shouldn't worry about profit. You should stay open.O You should follow the law of demand and cut your sales.QUESTION 2If the elasticity of a product is -1, the best thing to do is:O drop the priceO raise the priceO leave it aloneO bring the elasticity up to a positive numberQUESTION 3Game theory:O is used mostly in monopoly marketsO never occurs when markets are in equilibriumhelps a firm make strategy decisions considering the actions of other firmsO is how consumers make rational economic decisions

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QUESTION 1 If your fixed costs are $10,000, your variable costs are $10,000, and your revenue is $15,000, what do you do? O You should shut down the firm. You should shut down in the long run, but stay open in the short run. O You shouldn't worry about profit. You should stay open. You should follow the law of demand and cut your sales.

QUESTION 1 If your fixed costs are $10,000, your variable costs are $10,000, and your revenue is $15,000, what do you do? O You should shut down the firm. You should shut down in the long run, but stay open in the short run. O You shouldn't worry about profit. You should stay open. You should follow the law of demand and cut your sales.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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