Economics (AS & A Level) · May / June 2026 · Paper 32 · Question 6

The table contains information about a perfectly competitive firm which produces where marginal cost equals marginal revenue. | sale price per unit | $2 | |---|---| | variable cost per unit | $1.50 | | fixed cost per month | $5000 | | output produced and sold per month | 20 000 units | By how much would the monthly profit of the business change in the short run if it chooses to shut down immediately?

1. A$5000
2. B$10 000
3. C$15 000
4. D$40 000

As printed in the paper