6Revenue Profit Profit MaximisationMedium1 mark
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?