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Susan quit her job as a teacher, which paid her $36 000 per year, in order to start her own catering business. She spent $12
Susan quit her job as a teacher, which paid her $36 000 per year, in order to start her own catering business. She spent $12 000 of her savings, which had been earning 10 percent interest per year, on equipment for her business. She also borrowed $12 000 from her bank at 10 percent interest per year, which she also spent on equipment. For the past several months she has spent $1000 per month on ingredients and other variable costs. Also for the past several months she has taken in $3500 in monthly revenue. What should Susan do in the short run and the long run? Select one: O a. In the short run, Susan should continue to operate her business, but in the long run she should cross out exit the industry. O b. In the short run, Susan should continue to operate her business, but in the long run she will cross probably face competition from newly entering firms. O c. In the short run, Susan should continue to operate her business, and she is also in long-run cross equilibrium. O d. In the short run, Susan should shut down her business and in the long run she should exit the cross industry
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