As president and owner of the Sour Grapes Lemonade Company, you face the costs shown. To maximize your financial well-being, you should
A)continue to operate in the short run because rent is less than sales.
B)shut down because variable costs exceed fixed costs.
C)shut down because the company is losing money.
D)continue operating in the short run.

Question

As president and owner of the Sour Grapes Lemonade Company, you face the costs shown. To maximize your financial well-being, you should
A)continue to operate in the short run because rent is less than sales. 
B)shut down because variable costs exceed fixed costs. 
C)shut down because the company is losing money. 
D)continue operating in the short run.

Quizplus · Accepted Answer

The Answer of  As president and owner of the Sour Grapes Lemonade Company, you face the costs shown. To maximize your financial well-being, you should
A)continue to operate in the short run because rent is less than sales. 
B)shut down because variable costs exceed fixed costs. 
C)shut down because the company is losing money. 
D)continue operating in the short run.

As President and Owner of the Sour Grapes Lemonade Company