Nabil cleaning service is a profit-maximizing, competitive firm. Nabil cleans washroom for $25 each. His total cost each day is $260, of which $30 is a fixed cost. He deep cleans 10 toilets a day. a. What can you say about Nabil’s short-run decision regarding shutdown and b. What is his long-run decision regarding exit? Explain each decision with diagram.

Nabil cleaning service is a profit-maximizing, competitive firm. Nabil cleans washroom for $25 each. His total cost each day is $260, of which $30 is a fixed cost. He deep cleans 10 toilets a day. a. What can you say about Nabil’s short-run decision regarding shutdown and b. What is his long-run decision regarding exit? Explain each decision with diagram.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 2PA

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