Question 14 Ma owns a pizza shop with AVC = $70 and ATC = $98. It is a competitive market and the market price for pizza is $95. Mr. Ma should A: exit the market in both the short-run and long-run. B: continue his business in both the short-run and long-run. C: continue his business in the short-run but exit in the long-run if the situation continues. D: shut down his business in the short-run but continue in the long-run if the situation continues.
Question 14 Ma owns a pizza shop with AVC = $70 and ATC = $98. It is a competitive market and the market price for pizza is $95. Mr. Ma should A: exit the market in both the short-run and long-run. B: continue his business in both the short-run and long-run. C: continue his business in the short-run but exit in the long-run if the situation continues. D: shut down his business in the short-run but continue in the long-run if the situation continues.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question 14
Ma owns a pizza shop with
A: exit the market in both the short-run and long-run.
B: continue his business in both the short-run and long-run.
C: continue his business in the short-run but exit in the long-run if the situation continues.
D: shut down his business in the short-run but continue in the long-run if the situation continues.
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