Suppose that in the second year her average total cost per dog is $35 and that $20 of that is associated with the variable cost. she finds that the market price for dog grooming has fallen, however, to $30 per dog. should she stay open or close the business? briefly explain your answer.

She should stay open, because the revenue of from dog grooming ($30 per dog), is still high enough to cover her variable cost of $20 per dog, even though she is operating at a loss.

Explanation:

Profit = Revenue - Total costs

Total costs = Fixed costs + variable costs

Profit = $30 - $35 = -$5 per dog

This shows she is operating at a loss of $5 per dog.

If a company does not make enough revenue to cover its total costs, then it is operating at a loss.

However such a company must consider its variable cost before deciding whether to shut down.

A company should only shut down if it is unable to make enough revenue to cover its variable cost.

If a company is operating at a loss but can at least cover its variable cost, then it should stay open at least in the short run.

christopher columbus sail the ocean blue 1492

the answerr would be 1