Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

22. A firm sets its price at $10.00 per unit. It has an average variable cost of $8.00 and an average fixed cost of $4.00

22. A firm sets its price at $10.00 per unit. It has an average variable cost of $8.00 and

an average fixed cost of $4.00 per

unit. In the long run, this firm is

a.earning zero profit and hence shut down b.unable to cover fixed cost and shut down c. incurring profit d. incurring loss per unit of $ 2.00 n should shut down

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Mathematics for Business Economics Life Sciences and Social Sciences

Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen

12th edition

321614003, 978-0321614001

More Books

Students also viewed these Economics questions

Question

minimize project total cost

Answered: 1 week ago