A firm sells 1,000 units per week. Suppose the average variable cost is $40, and the average cost is $70. In the short run, the break-even price is $ Suppose the firm charges a price of $30 per unit. In the long run, the break-even price is S Use the following table to indicate whether the firm will shut down or continue to produce in the short run and the long run. Continue to Produce Shut Down Time Short Run

A firm sells 1,000 units per week. Suppose the average variable cost is $40, and the average cost is $70. In the short run, the break-even price is $ Suppose the firm charges a price of $30 per unit. In the long run, the break-even price is S Use the following table to indicate whether the firm will shut down or continue to produce in the short run and the long run. Continue to Produce Shut Down Time Short Run

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 4.7P

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