unuou A tomato farmer operates in a perfectly competitive industry. Revenues are $2,000 a montn, toi costs are $2,500, and total fixed costs are $1,000. The farmer should Select one: exit in the short run and produce in the long run. shut down in the short run and stay in the industry in the long run if losses persist. increase output in the short run and maintain the capacity in the long run. continue to produce in the short run and exit in the long run. shut down in the short run and exit in the long run.

unuou A tomato farmer operates in a perfectly competitive industry. Revenues are $2,000 a montn, toi costs are $2,500, and total fixed costs are $1,000. The farmer should Select one: exit in the short run and produce in the long run. shut down in the short run and stay in the industry in the long run if losses persist. increase output in the short run and maintain the capacity in the long run. continue to produce in the short run and exit in the long run. shut down in the short run and exit in the long run.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.7IP

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