Answered step by step
Verified Expert Solution
Question
1 Approved Answer
For Bob, his total variable cost would be his total costs for each day minus his fixed cost which is $280-$30=$250. Therefore, his average variable
For Bob, his total variable cost would be his total costs for each day minus his fixed cost which is $280-$30=$250. Therefore, his average variable cost is his total variable cost for each day divided by the number of lawns that he mows each day which is $250/10=$25. Since his average variable cost is less than his price, he will not need to shut down in the short run.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started