If your total revenue is $10 million,your variable costs are $8 million,and your fixed costs are $20 million,in the short run you will

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In the short run, the firm should still operate despite the fact that it is not covering its fixed costs. This is because the total revenue is greater than its variable costs, which means that the firm is still covering its variable costs and making a contribution toward its fixed costs. Shutting down would mean that the firm would earn zero revenue and would still have to pay its fixed costs, leading to even greater losses. Going out of business would be a drastic step that is not warranted by the current situation.

If Your Total Revenue Is $10 Million,your Variable Costs Are