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7. A firm is selling 2,000 units per year for $30 each; it can sell all it wants at that price but cannot change the price. Annual total fixed costs are $45,000. Marginal cost is $30 per unit; average variable cost is $12 per unit. The firm will in the short run and in the long run. a. produce; produce b. shut down; produce c. produce; leave the industry d. shut down; leave the industry

7. A firm is selling 2,000 units per year for $30 each; it can sell all it wants at that price but cannot change the price. Annual total fixed costs are $45,000. Marginal cost is $30 per unit; average variable cost is $12 per unit. The firm will in the short run and in the long run. a. produce; produce b. shut down; produce c. produce; leave the industry d. shut down; leave the industry

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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7. A firm is selling 2,000 units per year for $30 each; it can sell all it wants at that price but cannot change the price. Annual total fixed costs are $45,000. Marginal cost is $30 per unit; average variable cost is $12 per unit. The firm will in the short run and in the long run. a. produce; produce b. shut down; produce c. produce; leave the industry d. shut down; leave the industry
Transcribed Image Text:7. A firm is selling 2,000 units per year for $30 each; it can sell all it wants at that price but cannot change the price. Annual total fixed costs are $45,000. Marginal cost is $30 per unit; average variable cost is $12 per unit. The firm will in the short run and in the long run. a. produce; produce b. shut down; produce c. produce; leave the industry d. shut down; leave the industry
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