table quantity price/dollars total revenue total variable costs dollars total co
ID: 1229155 • Letter: T
Question
table
quantity price/dollars total revenue total variable costs dollars total cost dollars
0 22 0 0 50
1 20 20 16 66
2 19 38 31 81
3 18 54 45 95
4 17 68 59 109
5 16 80 75 125
6 15 90 93 143
7 14 98 112 162
8 13 104 140 190
9 12 108 180 230
10 11 110 230 280
*****what is the best course of action for the firm in the short run?
A. IT SHOULD SHUT DOWN, B. IT SHOULD INCREASE ITS SALES BY LOWERING ITS PRICE, C. IT SHOULD STAY IN BUSINESS BECAUSE IT COVERS SOME OF ITS FIXED COST. D. IT SHOULD NOT CUT ITS PRICE BUT IT SHOULD INCREASE ITS SALES BY ADVERTISING
Explanation / Answer
As you can see that for Year 8 - There was Total loss of 86 and Fixed cost was 50 out of it As you can see that for Year 9 - There was Total loss of 122 and Fixed cost was 50 out of it As you can see that for Year 10 - There was Total loss of 170 and Fixed cost was 50 out of it Since the loss of the company is increasing every year and every year the loss exceeds the amount of fixed costs, then it is advisable to shut down the factory Answer is a Happt to help
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