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Florencia makes reclining chairs in a perfectly competitive industry. She is looking for economic advice and shares the following data with you about her business. (Assume cost curves have their "standard" shapes we considered in the course.) - Total revenue is $240,000, - Total fixed costs are $140,000 - Total variable costs are $152,000 - Marginal cost is $300/ unit - Quantity produced is 600 units What will you suggest to Florencia? Shut-down immediately Do not shut down and increase production Do not shut down but decrease production Do not shut down and do not change the current production level..

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Florencia makes reclining chairs in a perfectly competitive industry. She is looking for economic advice and shares the following data with you about her business. (Assume cost curves have their "standard" shapes we considered in the course.) - Total revenue is $240,000, - Total fixed costs are $140,000 - Total variable costs are $152,000 - Marginal cost is $300/ unit - Quantity produced is 600 units What will you suggest to Florencia? Shut-down immediately Do not shut down and increase production Do not shut down but decrease production Do not shut down and do not change the current production level.

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  • 1. Florencia makes reclining chairs in a perfectly competitive industry. She is looking for economic advice and shares the following data with you about her business. (Assume cost curves have their "standard" shapes we considered in the course.) - Total revenue is $240,000, - Total fixed costs are $140,000 - Total variable costs are $152,000 - Marginal cost is $300/ unit - Quantity produced is 600 units What will you suggest to Florencia? Shut-down immediately Do not shut down and increase production Do not shut down but decrease production Do not shut down and do not change the current production level.