micro economics

posted by .

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

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    You’ve been hired by an unprofitable firm to determine whether it should shut down its unprofitable operation. The firm currently uses 70 workers to produce 300 units of output per day. The daily wage (per worker) is $100, and the …
  2. Economics

    ob'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 lawn a day. What can you say about Bob's short-run decision regarding …
  3. math

    Liann works in the olde tyme Soda shoppe. The shop sells milkshakes, double milkshakes, and triple milkshakes. A shake uses 1/8 cup of syrup, a double shake uses 1/4 cup of syrup, and a triple shake uses 3/8 cup of syrup. How many …
  4. economics

    Bubba's Burgers sells hamburgers in a perfectly competitive market at a price of $1.50 each. At the profit-maximizing (cost-minimizing) level of output, average total cost is $1.90 per hamburger and average variable cost is $1.75 per …
  5. Business studies

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

    Ally loves the beach and decides to spend the summer selling various ice cream products on the beach. From her account course, she knows that her total cost is calculated as Total Cost= Fixed Cost + Various Cost She estimates that …
  7. algebra

    Regrind, Inc. regrinds used typewriter platens. The cost per platen is $1.70. The fixed cost to run the grinding machine is $267 per day. If the company sells the reground platens for $4.70, how many must be reground daily to break …
  8. economics

    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 …
  9. Algebra

    Mickey went to Donald Dee's to buy 75 milkshakes for his party. Each milkshake cost the same integer amount of cents. In total, Mickey spent at least $124.00 on milkshakes. What is the smallest possible cost (in cents) of a milkshake?
  10. Math

    Four cheeseburgers and five milkshakes cost a total of $25.50. Two milkshakes cost $1.75 more than one cheeseburger, and also find the cost of a milkshake. (A)$3.25 for a cheeseburger and $250 for a milkshake. (B)$3 for a cheeseburger …

More Similar Questions