Assume a firm has the following cost and revenue characteristics at its current level of output: price=8.00 . average variable cost=6.00 and average fixed cost =4.00 . In the long run, the firm
a. Should shut-down as its making a loss of 2
b. Should continue operating as long as it is covering the variable costs of 6
c. Should continue operating as long as it is covering the fixed costs of 4
d. Should not shut down
Question 2
To incentivize employees
a. Measure performance, whether formally or informally
b. Tie the performance metrics to compensation
c. All of the above
d. None of the above
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