Suppose the fixed cost of Christmas trees business is $7,000 and sunk. The 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
The owner A) should shut down the business.
B) should keep operating.
C) should sell less.
D) None of the above.
B
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Public sector investment projects are economically justifiable only when:
a. the discounted social benefits exceed the discounted social costs b. the internal rate of return exceeds the social discount rate c. the benefit-cost ratio exceeds zero d. a and b only e. a, b, and c
Which of the following would result in a decrease in aggregate demand?
a. A higher domestic price level b. Higher raw materials prices c. Higher rates of tax d. Technological advances e. Expansionary government policy
Owning a home is a good example of a transferable resource T or F
Indicate whether the statement is true or false.
Y = C + S even when the economy is not in equilibrium.
Answer the following statement true (T) or false (F)