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Tom sells 2,000 snowballs a month at a reduced price of $4.00. Each snowball still costs him $2.50 for labor and other ingredients. Tom also
Tom sells 2,000 snowballs a month at a reduced price of $4.00. Each snowball still costs him $2.50 for labor and other ingredients. Tom also pays $4,000 a month for the space he rents. However, Tom is no longer obligated to pay the rent for the space. He can quit and leave the business with no penalties. (1) Is Tom better off staying in the business
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