A firm has Total Costs (TC) of $12,000 over the next three months, of which $8,000 are fixed costs (


Question: A firm has Total Costs (TC) of $12,000 over the next three months, of which $8,000 are fixed costs (TFC) for rent on its lease that cannot be broken. If it stays in business over those months, then the firm will collect only $6,000 in revenues (TR). So, considering only this information, should they stay in business for those three months, or should they close down right now? Provide your reasoning.

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Answer: The solution consists of 1 page
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