Answered step by step
Verified Expert Solution
Link Copied!

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Principles of Economics

Authors: Tyler Cowen, Alex Tabarrok

3rd edition

1429278390, 978-1429278416, 1429278412, 978-1429278393

More Books

Students also viewed these Economics questions

Question

An improvement in the exchange of information in negotiations.

Answered: 1 week ago

Question

1. Effort is important.

Answered: 1 week ago