-Based on the table above which shows Chip's costs, if rice sells for $600 a tonne, Chip

Question

Quizplus · Accepted Answer

Without the table, it's impossible to calculate exact figures. However, the correct choice typically depends on whether Chip's revenue covers its variable costs. If it does, even if there's an economic loss, Chip should stay open in the short run to cover some fixed costs. Shutting down is only preferable if the variable costs exceed the revenue from selling the product.

-Based on the Table Above Which Shows Chip's Costs, If