Total Revenue $2,000 per Week Total Variable Cost $2,200 per Week Total Fixed Cost $1,000 per Week Let us suppose Harry's, a local supplier of chili and pizza, has the revenue and cost structure shown here. Harry's should stay open in the short run. Harry's should stay open in the long run. Harry's should shut down in the short run. Harry's should stay open in the short run but shut down in the long run.
Total Revenue $2,000 per Week Total Variable Cost $2,200 per Week Total Fixed Cost $1,000 per Week Let us suppose Harry's, a local supplier of chili and pizza, has the revenue and cost structure shown here. Harry's should stay open in the short run. Harry's should stay open in the long run. Harry's should shut down in the short run. Harry's should stay open in the short run but shut down in the long run.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition
Section: Chapter Questions
Problem 7E
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Total Revenue $2,000 per Week Total Variable Cost $2,200 per Week Total Fixed Cost $1,000 per Week Let us suppose Harry's, a local supplier of chili and pizza, has the revenue and cost structure shown here.
Harry's should stay open in the short run.
Harry's should stay open in the long run.
Harry's should shut down in the short run.
Harry's should stay open in the short run but shut down in the long run.
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