Similar to a perfectly competitive firm, a monopolist that is confronted with fixed costs in the short run should produce versus shut down if the total revenue that it can generate is sufficient to cover its:
total fixed costs
marginal costs
total variable costs
total costs

Question

Similar to a perfectly competitive firm, a monopolist that is confronted with fixed costs in the short run should produce versus shut down if the total revenue that it can generate is sufficient to cover its:
	total fixed costs
	marginal costs
	total variable costs
	total costs

anonymous · Answer

variable costs. Because if they aren't covered, you lose less by not making anything at all.

anonymous · Answer

I would say Total Costs because in economics, and cost accounting, total cost describes the total economic cost of production and is made up of variable costs, which vary according to the quantity of a good produced and include inputs such as labor and raw materials, plus fixed costs, which are independent of the quantity of a good produced.

So if both are covered then you should be fine.

anonymous · Answer

But a firms will continue to produce even if it isn't covering its fixed costs.

anonymous · Answer

Maybe because its short run.