A firm sells 1,000 units per week. It charges $70 per unit, the average variable costs are

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A firm sells 1,000 units per week. It charges $70 per unit, the average variable costs are $25, and the average costs are $65.

a. What should the firm do in the short run? Why?

b. What should the firm do in the long run? Why?

c. At what price would the firm consider shutting down in the short run?

d. At what price would the firm consider shutting down in the long run?

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Managerial Economics

ISBN: 9781337106665

5th Edition

Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward

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Question Posted: Jul 08, 2020 02:36 AM

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A firm sells 1,000 units per week. It charges $70 per unit, the average variable costs are

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a The firm should continue to operate as the 70 price is greater than the 25 average var...View the full answer

Managerial Economics

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