# 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?

• 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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