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A small firm has monthly revenue of $15,000, variable costs of $12,000, and fixed costs of $5,000. The firms profit is and i
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Answer #1

Total revenue = $15000.

Total cost = fixed cost + variable cost = $12000+$5000=$17000.

Profit = $15000-$17000 = -$2000.

However because the total revenue is more than the variable cost, the firm will not shut down.

The correct option is therefore,

-$2000, should not.

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