In the short run, if a firm shuts down, its total revenue is
a. 0
b. equal to its fixed costs
c. greater than its variable costs
d. greater than its fixed costs
e. less than its variable costs
Question 2
A monopolist earning short-run economic profit determines that at its present level of output, marginal revenue is 23 and marginal cost is 30 . Which of the following should the firm do to increase profit?
a. Raise price and lower output.
b. Lower price and lower output.
c. Raise price and raise output.
d. Lower price and raise output.
e. Lower output but leave price unchanged.
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