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Your Food- Services Company Has Been Named as the Sole

Question 38

Multiple Choice

Your food- services company has been named as the sole provider of meals at a small university. The cost and demand schedules are:  Sold per Day  Price per Meal  Total  Fixed Cost  Total  Variable Cost  Total Revenue 0$3.50$15000100$3.25$150$300$325200$3.00$150$500$600300$2.75$150$650$825400$2.50$150$750$1000500$2.25$150$830$1125600$2.00$150$905$1200700$1.75$150$995$1225 TABLE 102\begin{array}{l}\begin{array} { | c | c | c | c | c | } \hline \text { Sold per Day } & \text { Price per Meal } & \begin{array} { c } \text { Total } \\\text { Fixed Cost }\end{array} & \begin{array} { c } \text { Total } \\\text { Variable Cost }\end{array} & \text { Total Revenue } \\\hline 0 & \$ 3.50 & \$ 150 & 0 & 0 \\\hline 100 & \$ 3.25 & \$ 150 & \$ 300 & \$ 325 \\\hline 200 & \$ 3.00 & \$ 150 & \$ 500 & \$ 600 \\\hline 300 & \$ 2.75 & \$ 150 & \$ 650 & \$ 825 \\\hline 400 & \$ 2.50 & \$ 150 & \$ 750 & \$ 1000 \\\hline 500 & \$ 2.25 & \$ 150 & \$ 830 & \$ 1125 \\\hline 600 & \$ 2.00 & \$ 150 & \$ 905 & \$ 1200 \\\hline 700 & \$ 1.75 & \$ 150 & \$ 995 & \$ 1225 \\\hline\end{array}\\\text { TABLE } 10 - 2\end{array}
-Refer to Table 10- 2. If the firm were to shut down in the short run its losses per day would be


A) equal to its average variable cost.
B) equal to its total revenue.
C) equal to its total cost.
D) zero.
E) $150.

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