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The Accountants Hired by the Brookside Racquet Club Have Determined

Question 283

Multiple Choice

The accountants hired by the Brookside Racquet Club have determined total fixed cost to be $75,000, total variable cost to be $130,000, and total revenue to be $125,000. Because of this information, in the short run, the Brookside Racquet Club should


A) shut down because staying open would be more expensive.
B) lower their prices to increase their profits.
C) stay open because shutting down would be more expensive.
D) stay open because the firm is making an economic profit.

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