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9. Individual Problems 5-7 A firm sells 1,000 units per week. Suppose the average variable cost is $30, and the average cost is $65. In
9. Individual Problems 5-7
A firm sells 1,000 units per week. Suppose the average variable cost is $30, and the average cost is $65.
In the short run, the break-even price is
. In the long run, the break-even price is
.
Suppose the firm charges a price of $15 per unit.
Use the following table to indicate whether the firm will shut down or continue to produce in the short run and the long run.
Time | Continue to Produce | Shut Down | |
---|---|---|---|
Short Run | |||
Long Run |
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