Zevon's cafe has the following costs: $9,000 per month in rent, $4,000 per month in wages, $2,000 per month in food and supplies, and $4,000 per month in insurance. All of the costs of production, excluding their rent and insurance, can vary, depending on how many coffees are sold at the café. The cafe earns $8,000 in revenue per month. Zevon should their cafe and will earn a profit of Select one: a. keep running; minus $11,000 Ob. shut down; minus $6,000 c. keep running; $2,000 O d. shut down; zero cross out cross out cross out cross out

Zevon's cafe has the following costs: $9,000 per month in rent, $4,000 per month in wages, $2,000 per month in food and supplies, and $4,000 per month in insurance. All of the costs of production, excluding their rent and insurance, can vary, depending on how many coffees are sold at the café. The cafe earns $8,000 in revenue per month. Zevon should their cafe and will earn a profit of Select one: a. keep running; minus $11,000 Ob. shut down; minus $6,000 c. keep running; $2,000 O d. shut down; zero cross out cross out cross out cross out

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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