Question
A competitive firm's optimal output in the short run is 10 units. At this output, fixed costs are $50, the price is $5, and average
A competitive firm's optimal output in the short run is 10 units. At this output, fixed costs are $50, the price is $5, and average variable cost is $2.50. The firm should __ in the short run and ___ in the long-run.
Group of answer choices
Shut down; exit
Continue to operate; exit
Continue to operate; stay
Shut down; stay
Shut down; increase production
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Essentials of Business Driven Information Systems
Authors: Paige Baltzan, Amy Phillips
1st edition
1260004716, 978-0073376721
