Question;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. 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 price of the product, the quantity of the;product you produce, fixed costs, total cost, figure out total revenue, total;and average variable costs. Then go ahead and make your decision. Explain;carefully 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? What is the difference between;shutting down and going out of business?
Paper#57606 | Written in 18-Jul-2015Price : $22