Jerome, the florist, sold 500 bridesmaid's bouquets in June. He estimates his costs that month were ATC = $10, AVC = $6, and MC = $9. If he sold each bouquet at the constant market price of $9, Jerome:

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Jerome's total revenue (TR) from selling the bouquets is 500 bouquets * $9 = $4500. His total cost (TC) is ATC * quantity = $10 * 500 = $5000. The loss is TC - TR = $5000 - $4500 = $500. Jerome did not need to shut down because his price ($9) was above his AVC ($6), meaning he was covering his variable costs and contributing to fixed costs.

Jerome, the Florist, Sold 500 Bridesmaid's Bouquets in June