4. Bob's ice-cream house, a perfectly competitive firm, is suffering a loss, but the price is still above minimum average variable cost. Then in the short run this firm should and in the long run, if there is no change in economic conditions, this firm should a) shut down; exit the industry b) shut down; expand e) produce where MR = MC; exit the industry 4) produce where MR = MC; expand

4. Bob's ice-cream house, a perfectly competitive firm, is suffering a loss, but the price is still above minimum average variable cost. Then in the short run this firm should and in the long run, if there is no change in economic conditions, this firm should a) shut down; exit the industry b) shut down; expand e) produce where MR = MC; exit the industry 4) produce where MR = MC; expand

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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