t a firm's profit-maximizing level of output, its price is $200 and its short-run average total cost is $225. The firm Da has a profit of $25 per unit of output. Ob. should shut down if its short-run average variable cost is more than $200. Oc should remain in business in the long run if these conditions are expected to continue. d. should shut down if its short-run average variable cost exceeds $25.

t a firm's profit-maximizing level of output, its price is $200 and its short-run average total cost is $225. The firm Da has a profit of $25 per unit of output. Ob. should shut down if its short-run average variable cost is more than $200. Oc should remain in business in the long run if these conditions are expected to continue. d. should shut down if its short-run average variable cost exceeds $25.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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