Billy Idol's Department Store operates in a perfectly competitive market. At the point where MC=MR, ATC = $250, AVC = $175, and the price per unit is $180. In this situation, Group of answer choices Billy is earning a positive economic profit Billy should shut down immediately Billy is losing money in the short run, but should continue to operate the market price will rise in the short run to increase profits
Billy Idol's Department Store operates in a perfectly competitive market. At the point where MC=MR, ATC = $250, AVC = $175, and the price per unit is $180. In this situation, Group of answer choices Billy is earning a positive economic profit Billy should shut down immediately Billy is losing money in the short run, but should continue to operate the market price will rise in the short run to increase profits
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Billy Idol's Department Store operates in a
Billy is earning a positive economic profit
Billy should shut down immediately
Billy is losing money in the short run, but should continue to operate
the market price will rise in the short run to increase profits
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