If a firm's current revenues are less than its current variable costs, it should shut down

a. if marginal cost rises above marginal revenue.

b. immediately.

c. if price falls below its current fixed costs.

d. if expected revenues are less than expected costs.

Question

Hyrum

20 February, 13:38

+4

Answers (1)

Know the Answer?

Reid Gonzalez · Answer 1

b. immediately.

Explanation:

because losses would be higher if they continue, it should shut down immediately.

If a firm's current revenues are less than its current variable costs, it should shut downa. if marginal cost rises above marginal revenue.b. immediately.c. if price falls below its current fixed costs.d. if expected revenues are less than expected costs.