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Even though firm is only making $1,500 before fixed costs are subtracted they are still able to cover their variable costs. Since the firm's variable costs are $7,500 daily, we can assume that its fixed costs are more than the $1,500 left over after subtracting the variable costs. I would suggest that the firm continue to operate in the short term and revise their plan.
There are also other factors that need to be taken into consideration. For example if the firm has a loan on their property they will still need to pay that. In this case since the variable costs are covered through the sale of units produced with some profit left over, the firm would not have as big a loss as it would if it were to close their doors completely...
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