6. Suppose that Ahmad owns a pizza shop in Ajman. He sells 60 pizzas per day for 20 UAD each. His daily total cost is 1000 UAD, of which 75 UAD is fixed cost. What can you say about Ahmad's short-run decision regarding shut down and his long-run decision regarding exit? Prove your answers with your calculations.
6. Suppose that Ahmad owns a pizza shop in Ajman. He sells 60 pizzas per day for 20 UAD each. His daily total cost is 1000 UAD, of which 75 UAD is fixed cost. What can you say about Ahmad's short-run decision regarding shut down and his long-run decision regarding exit? Prove your answers with your calculations.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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