Suppose the Estimated Fixed Cost of Christmas Trees Business Is

question 88

Multiple Choice

Suppose the estimated fixed cost of Christmas trees business is $7,000 and not sunk.The estimated variable cost for each tree is $20.According to the forecast,the market price for Christmas trees is $25 each and the owner could sell 1000 trees at most each year.In the long run,the owner

• A)should shut down.
• B)should keep operating.
• C)should sell less.
• D)None of the above.