A profit-maximizing business incurs an economic loss of $$30,000 per year. Its fixed cost is $45,000 per year. Should it produce or shut down in the short run? Explain Should it stay in the industry or exit in the long run? Explain
A profit-maximizing business incurs an economic loss of $$30,000 per year. Its fixed cost is $45,000 per year. Should it produce or shut down in the short run? Explain Should it stay in the industry or exit in the long run? Explain
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 7CQ
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A profit-maximizing business incurs an economic loss of $$30,000 per year. Its fixed cost is $45,000 per year.
Should it produce or shut down in the short run? Explain
Should it stay in the industry or exit in the long run? Explain
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