0 LIKES LikeUnLike
Bob's lawn-mowing service is a profit-maximizing, competitive firm. Bob mows lawns for $27 each. His total cost each day is $280, of which $30 is a fixed cost. He mows 10 lawns a day. What can you say about Bob's short-run decision regarding shut down and his long-run decision regarding exit? I computed the total profit to be at $-10.00 per day, but I need some help on commenting on his respective short-run and long-run decisions.
Tags:
Report (0) (0) | earlier
Latest activity: earlier. This question has 2 answers.