Question
A firm sells 1,000 units per week. Suppose the average variable cost is $25, and the average cost is $55. In the short run, the
A firm sells 1,000 units per week. Suppose the average variable cost is $25, and the average cost is $55.
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 $70 per unit.
Will thefirm shut down or continue to produce in the short run? Will the firm shut down or continue to produce in the long run?
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Intermediate Microeconomics and Its Application
Authors: Walter Nicholson, Christopher M. Snyder
12th edition
978-1133189022, 1133189024, 1133189032, 978-1305176386, 1305176383, 978-0357687000, 978-1133189039
