You Are the Owner of an Ice Cream Shop That

Multiple Choice

You are the owner of an ice cream shop that earns a profit most of the year except during the cold winter months. During the month of December, your rent and other fixed costs amount to a total of $200. If you remain open, your total variable costs (workers, ice cream cones, etc.) will amount to $300. If you would be able to sell 100 ice cream cones at $4 each during December, then

A) to maximize profits, you should remain open in December.
B) to maximize profits, you should shut down in December.
C) you will be able to avoid making a loss by shutting down in December.
D) you should go out of business in the long run if there is any single month in which you do not earn a profit.