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:

European Powers

Refers to the leading countries in Europe, historically recognized for their global influence and colonial activities.

Latin America

A region in the Western Hemisphere, characterized by countries that speak Romance languages, primarily Spanish and Portuguese.

Free Blacks

African Americans who were not enslaved before the Civil War, enjoying limited rights in America.

Abolitionist Societies

Organizations committed to the elimination of slavery and the emancipation of enslaved people during the 18th and 19th centuries.