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micro economics

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Frank owns a soda fountain and sells milkshakes. he sells 50 milkshakes per day for $5 each. his daily cost is $290, of which $30 is fixed cost. what can you say about Franks short run decision regarding shut down and his long run decision regarding exit?

please help me out !

  • micro economics - ,

    (290-31)/50
    = $5.2 (bigger than $5)
    he should shutdown because in short run cannot be operate so in the long run and exist business also cannot be operate

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