A Firm Sells1000 Units Per Week

question 44

Multiple Choice

A firm sells1000 units per week.It charges $15 per unit,the average variable costs are $10,and the average costs are $25.The firm should

• A)Shut-down as the firm is making a loss of $10,000 per week
• B)Shut-down as the firm cannot cover the fixed costs
• C)Continue operating as the firm is covering all the variable costs and some of the fixed costs
• D)Shut-down because it is cost effective to pay off the remaining fixed costs

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Definitions:

Generations

Generations are groups of people born and living around the same time, known for having shared experiences that shape their worldview.

Authoritative

Characterized by or showing a commanding, self-confident force or an ability to give instructions or directions.

Firm Controls

Strict rules or guidelines implemented to regulate behavior or operations within an organization or system.

Responsive

Being quick to react or respond appropriately to changes or stimuli.