Asked by
Jermss Coleman
on Oct 12, 2024
Verified
Jimmy,Walter,Mike,and Bill run a school for political candidates.The school has fixed costs of $10 million,variable costs of $4 million,and total revenue of $15 million.In the short run the school will _____ and in the long run the school will ___.
A) operate;stay in business
B) operate;go out of business
C) shut down;stay in business
D) shut down;go out of business
Variable Costs
Costs that vary directly with the level of production or output, such as materials and labor.
Fixed Costs
Expenses that do not change in the short term despite variations in production levels or sales volumes, such as rent, salaries, or insurance.
Total Revenue
The overall revenue that originates from a company's core operations, including the sale of its products or services.
- Absorb the theories behind decision making for both short-term and long-term planning in corporate settings.
- Identify the conditions under which a business will continue to operate, shut down, or exit the industry.
Verified Answer
JG
Learning Objectives
- Absorb the theories behind decision making for both short-term and long-term planning in corporate settings.
- Identify the conditions under which a business will continue to operate, shut down, or exit the industry.