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Michelle has a business where she sells baskets for $17 each. The average variable cost of production is $12 per unit. The average total cost
Michelle has a business where she sells baskets for $17 each. The average variable cost of production is $12 per unit. The average total cost of production is $18. What should she do in the short run? a. She should continue operating since the business is earning an economic profit. b. She should shut down because the sales are NOT covering the average total cost of production. c. She should shut down since the business is earning zero economic profit. d. She should continue producing even though the sale price is NOT covering the average total cost of production
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