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Connor operates a lawn-mowing business in a perfectly competitive market. Connor mows each lawn for $27. His total cost every day is $280, of which
Connor operates a lawn-mowing business in a perfectly competitive market. Connor mows each lawn for $27. His total cost every day is $280, of which $30 is his fixed cost (cost of equipment). On an average day, he mows 5 lawns per day. Is Connor maximizing his profits in the long run and or in the short run? What would be your suggestion to him regarding his business? What if he charged $60 per lawn and mowed 5 lawns? What if he mowed 10 laws instead of 5 and charged $27 per lawn
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