Thelma has a long term lease on her cotton farm with an annual lease payment of $10,000. Prior to planting in the spring of 2020, she predicts that she will have $5000 left after paying all of her costs except for the annual lease payment. In this case, what should Thelma do? Select one: a. continue to operate because total revenue exceeds total cost b. shut down and experience an accounting loss of $5000 c. continue to operate even though she predicts an accounting loss of $5000 d. exit the market and experience an accounting loss of $10,000
Thelma has a long term lease on her cotton farm with an annual lease payment of $10,000. Prior to planting in the spring of 2020, she predicts that she will have $5000 left after paying all of her costs except for the annual lease payment. In this case, what should Thelma do? Select one: a. continue to operate because total revenue exceeds total cost b. shut down and experience an accounting loss of $5000 c. continue to operate even though she predicts an accounting loss of $5000 d. exit the market and experience an accounting loss of $10,000
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 7SQ
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Thelma has a long term lease on her cotton farm with an annual lease payment of $10,000. Prior to planting in the spring of 2020, she predicts that she will have $5000 left after paying all of her costs except for the annual lease payment. In this case, what should Thelma do?
Select one:
a. continue to operate because total revenue exceeds total cost
b. shut down and experience an accounting loss of $5000
c. continue to operate even though she predicts an accounting loss of $5000
d. exit the market and experience an accounting loss of $10,000
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