"I am making a loss, but with the rent I have to pay, I can’t afford to shut down at this point….

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"I am making a loss, but with the rent I have to pay, I can’t afford to shut down at this point of time." If this entrepreneur is attempting to maximise profits or minimise losses, his behaviour in the short run is

Options :-

1. rational, if the firm is covering its variable cost
2. rational, if the firm is covering its fixed costs
3. irrational, since plant closing is necessary to eliminate losses
4. irrational, since fixed costs are eliminated if a firm shuts down

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