
The Wheeler Wheat Farm has a long-term lease on 5000 acres of land in Saskatchewan.The annual lease payment is $240,000.Prior to planting in the spring of 2015,the farm's economist predicted that the farm would have $135,000 left after paying all of its costs except the annual lease payment.In this case,what should the Wheeler Wheat Farm do
A) it should continue to operate because total revenue exceeds total cost.
B) it should continue to operate even though it predicts an accounting loss of $105,000.
C) it should shut down and experience an accounting loss of $135,000.
D) it should exit the market and experience an accounting loss of $240,000.
Correct Answer:
Verified
Q88: Which of these curves is the competitive
Q89: When a perfectly competitive firm makes a
Q90: A firm will shut down in the
Q91: Figure 14-4 Q92: In the long run all of a Q94: Shrimp Galore,a shrimp harvesting business in British Q95: At the profit-maximizing level of output,which equation Q96: When fixed costs are ignored because they Q97: For all positive levels of output,when will Q98: When a profit-maximizing firm's fixed costs are
![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents