Bob's lawn mowing service is a profit-maximizing competitive firm. Bob mows lawns for $27.00 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 long-run decision regarding exit ?
economics - Margret, Wednesday, November 30, 2016 at 9:26pm
Should stay in the short run but exit in the long run