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Juanita's lawn-mowing service is a profit-maximizing, competitive firm. Juanita mows lawns for $30 each. Her total cost each day is $320, of which $70 is
Juanita's lawn-mowing service is a profit-maximizing, competitive firm. Juanita mows lawns for $30 each. Her total cost each day is $320, of which $70 is a fixed cost. She mows 10 lawns a day. In the short run, Juanita should A). Shut down or B.) Not shut down. In the long run, Juanita should A.) Exit or B.) Not Exit the industry.
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