A firm bought a pizza oven for $13,500 and if it shut down now, could sell the oven for $9,500. Which of the following statements is TRUE?
A) The relevant cost of the oven when considering shutting down is $13,500.
B) The relevant cost of the oven when considering shutting down is $9,500.
C) The relevant cost of the oven when considering shutting down is $4,000.
D) The cost of the oven does not matter when deciding whether or not to shut down.
C
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Characteristics shared by monopolistically competitive markets and monopoly markets include: a. strategic interactions among sellers
b. many sellers. c. firms facing a downward-sloping demand curve. d. insignificant barriers to entry.
Other things being equal, an increase in the workplace amenities, such as increased health care and more generous vacation options, would tend to shift the labor supply curve to the ____. a. left, increasing wages
b. right, increasing wages. c. left, decreasing wages. d. right, decreasing wages.