Let us suppose Harry's, a local supplier of chili and pizza, has the following revenue and cost structure:Total Revenue$3,000 Per WeekTotal Variable Cost$2,000 Per WeekTotal Fixed Costs$2,000 Per Week
A. Harry's should shut down in the short run but reopen in the long run.
B. Harry's should stay open in the short run.
C. Harry's should shut down in the short run.
D. Harry's should stay open in the long run.
Answer: B
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What will be an ideal response?
Which of the following statements is true?
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A) 0.65. B) 0.75. C) 1.33. D) 1.54.
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