If Your Total Revenue Is $10 Million,your Variable Costs Are

question 131

Multiple Choice

If your total revenue is $10 million,your variable costs are $8 million,and your fixed costs are $20 million,in the short run you will

• A)operate.
• B)shut down.
• C)go out of business.

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Definitions:

Free Flow

A state or situation where movement or progress occurs without obstruction or resistance, often used in the context of ideas, traffic, or materials.

Products

Items or services offered for sale by a business to satisfy the needs or wants of consumers.

Services

Intangible activities or benefits that are provided or sold as the primary product, such as healthcare, education, maintenance, or entertainment, distinguishable from physical goods.

Global Competition

Refers to the situation where businesses compete with each other on a global scale, dealing with competitors from various countries.