Suppose the fixed cost of Christmas trees business is $7,000 and sunk. The variable cost for each tree is $20. According to the forecast, the market price for Christmas trees is $25 each and the owner could sell 1000 trees at most each year
The owner A) should shut down the business.
B) should keep operating.
C) should sell less.
D) None of the above.
B
Economics
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Refer to Figure 12-1. If the firm is producing 200 units
A) it should increase its output to maximize profit. B) it is making a loss. C) it breaks even. D) it should cut back its output to maximize profit.
Economics
Which of the following policies have been suggested as ways to boost the growth of productivity?
A) tax cuts to boost saving and investment B) reducing the budget deficit by raising taxes and cutting expenditures C) increasing public investment in education D) redesigning and scaling back the regulatory apparatus of the federal government E) all of the above
Economics