4. Your company sells Beyonce concert DVDs. Total fixed costs for your operation are $10,000 a year. The variable costs are: 50Q-Q² (Q is in hundreds) The firm pays $500 a year in various taxes. The market price of these DVDs is $40. Beyonce has many fans. Show your work/thought process: a. Should the firm shut down in the short run? Explain.

4. Your company sells Beyonce concert DVDs. Total fixed costs for your operation are $10,000 a year. The variable costs are: 50Q-Q² (Q is in hundreds) The firm pays $500 a year in various taxes. The market price of these DVDs is $40. Beyonce has many fans. Show your work/thought process: a. Should the firm shut down in the short run? Explain.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.7IP

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