Question

Should a firm shut down if its weekly revenue is ​$1000​, its variable cost is ​$800​, and its fixed cost is ​$1200​, of which ​$350 is avoidable if it shuts​ down? ​ Why? The firm should A. produce because revenue of ​$1 comma 000 is greater than variable costs. B. shut down because revenue of ​$1 comma 000 is less than fixed costs. C. shut down because revenue of ​$1 comma 000 is less than avoidable costs. D. produce because revenue is positive. E. shut down because because variable costs are less than fixed costs.

Answer 1

A. produce because revenue of ​$1 comma 000 is greater than variable costs

Step-by-step explanation: