If an amusement park that is highly profitable during the summer months is unable to cover its variable costs during the winter months, it should
A) raise its prices during the winter months.
B) lower its prices during the summer months.
C) operate during the summer but shut down during the winter months.
D) operate during all months of the year as long as its profits during the summer exceed its losses during the winter.

Question

Quizplus · Accepted Answer

If the park cannot cover its variable costs in the winter, it should shut down during those months to avoid incurring losses, while operating in the profitable summer months.

If an Amusement Park That Is Highly Profitable During the Summer