In economics, revenue curves are often illustrated to show whether or not a business should stay in business, or shut down. In theory, if a business is able cover variable operational costs but unable to cover business overheads in the short run, the business should remain in business.
Economic analysis typically employs revenue graphs to assess whether a company should stay in operation or close its doors. According to theory, if a business can afford variable expenses but not fixed charges in the short run, it is advisable for the firm to remain operational.