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You are the manager of a small U.S. firm in a perfect competition market. Currently, you sell your product at the market price and your
You are the manager of a small U.S. firm in a perfect competition market. Currently, you sell your product at the market price and your profit is positive and maximized. You have just been notified by your landlord that the lease on the building in which your firm operates will increase by 10% at the beginning of the next month. . In the short run, should you consider raising your prices by 10% to offset the increase in your rent? Should you shut-down your business? . Would you decide to exit the market in the long run? Please explain
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