Respuesta :
In the short run, forever fitness should shut down because staying open would be more expensive.
Why should a firm shut down?
A firm should shut down in the short run, if its total variable cost is greater than its total revenue. In the long run, a firm should exit the market, if its fixed cost is greater than its total revenue.
The short run is the period where all of the factors of production are fixed. Variable cost is the cost that varies with the level of output. Fixed cost is the cost that remains constant regardless of the level of output.
In this question, the total variable cost is greater than the total revenue, thus in the short run, the firm should shut down because it is to expensive to run the business in the short run.
Here are the options:
a. stay open because shutting down would be more expensive.
b. shut down because staying open would be more expensive.
c. lower their prices to increase their profits.
d. stay open because the firm is making an economic profit.
To learn more about shutdown, please check: https://brainly.com/question/13034691
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