Firm a and Firm B Both Have Total Revenues of $200,000

question 97

Multiple Choice

Firm A and firm B both have total revenues of $200,000 and total costs of $250,000; firm A has total fixed costs of $40,000,while firm B has total fixed costs of $70,000.Which of the following statements are true in the short run?

• A)Firm A should operate.
• B)Firm B should operate.
• C)Firm A should shut down.
• D)Firm B should shut down.
• E)both b and c

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Definitions:

Need-Satisfaction Presentations

Sales presentations focused on addressing and fulfilling the specific needs or desires of the potential customer.

Missionary Salespeople

Sales representatives who promote their company's products indirectly, often by educating potential buyers about the benefits.

Sales Engineers

Professionals who combine technical knowledge with sales skills to provide advice and support on a range of products.

Selling Process

A series of steps taken by a salesperson to identify prospective buyers, communicate benefits, and facilitate a purchasing decision to close a sale.