Sail E0 Webinar
Question
Some restaurants are closed during some parts of the day because
Options:
A .  revenue is not high enough to cover the fixed costs
B .  revenue is not high enough to cover the variable costs
C .  revenue is not high enough to cover the total costs
D .  revenue is greater than the variable cost
Answer: Option B
:
B
Some restaurants are closed during some parts of the day because revenue is not high enough to cover the variable costs and hence meets the short-run shutdown condition.

Was this answer helpful ?
Next Question

Submit Solution

Your email address will not be published. Required fields are marked *

Latest Videos

Latest Test Papers