Economics
posted by Lynda .
ob's lawnmowing service is a profitmaximizing, 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 lawn a day. What can you say about Bob's shortrun decision regarding shut down and his longrun decision regarding exit.

Take a shot, what do you think?
Hint: if a firm's revenue is greater than its variable costs, but less than its total costs, it should stay in business in the short run.
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