Total Revenue $3,000 Per Week Total Variable Cost $2,000 Per

question 69

Multiple Choice

Total Revenue $3,000 Per Week Total Variable Cost $2,000 Per Week Total Fixed Cost $2,000 Per Week Let us suppose Harry's, a local supplier of chili and pizza, has the revenue and cost structure shown here.

• A)Harry's should stay open in the long run.
• B)Harry's should shut down in the short run.
• C)Harry's should stay open in the short run.
• D)Harry's should shut down in the short run but reopen in the long run.

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Definitions:

Liquidated

Liquidated refers to the process of converting assets into cash, often associated with dissolving a company or selling off its assets to pay off debts.

Trading Securities

Financial instruments that are purchased with the intention of selling them in the near term to profit from their price movements.

Unrealized Loss

A loss that results from holding onto an asset that has decreased in price, but has not yet been sold or liquidated.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, culminating in net income.