Suppose a Restaurant That Is Highly Profitable During the Summer

Multiple Choice

Suppose a restaurant that is highly profitable during the summer months is unable to cover its total cost during the winter months. If it wants to maximize profits, the restaurant should

A) shut down during the winter, even if it is able to cover its variable costs during that period.
B) continue operating during the winter months if it is able to cover its variable costs.
C) go a out of business immediately; losses should never be tolerated.
D) lower its prices during the summer months.