Question

Do you think a firm operating in a competitive market should shutdown if its revenue is r = 1000 rupees per week, its variable cost is vc = 500 rupees, and its sunk fixed cost is f = 600 rupees?

Answer 1

Answer:

Yes,I think think a firm operating in a competitive market should shutdown if its revenue is r = 1000 rupees per week, its variable cost is vc = 500 rupees, and its sunk fixed cost is f = 600 rupees