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Q. Say you are the manager of a perfectly competitive firm selling a product. Your business is making a loss because total revenue is less than total costs. Illustrate what would you do--shut down or continue to operate? Use hypothetical numbers to explain. Information you need to provide include--state the product you are selling the cost of the product the quantity of the product you produce, fixed costs, total cost, figure out total revenue, total also average variable costs. After that go ahead also make your decision. Elucidate carefully Elucidate why it makes better sense to shut down rather than continue to operate or to continue to operate rather than shut down, as the case may be. How do fixed costs play a role in your analysis? Illustrate what is the difference among shutting down also going out of business?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M9171767

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