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Suppose you are running a firm which constantly making a profit loss. Now, you must make a decision whether you should shut down a production or not....
. Your firm hires 60 workers to produce 250 units of output per day. The price of the product produced by your firm is $25 and those hired employees receive $90 per person per day. The cost of other variable inputs is $450 per day. Unfortunately, you can not figure out the firm's fixed cost, but you know that it is high enough that the firm's total costs exceed its total revenue. You know that the marginal cost of the last unit is $25. Under above condition, should you continue to operate even if your firm is constantly making a loss. Explain your answer carefully.