# economics

posted by .

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 -

Should stay in the short run but exit in the long run

## Similar Questions

1. ### 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 …
2. ### economics

A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue so \$10, average total cost of \$8 and fixed cost of \$200. a. what is the profit?
3. ### economics

You are hired as the consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit?
4. ### math

taryn and alastair both mow lawns. Each charges a flat fee to mow a lawn. The table shows the number of lawns in the past week, the time spent mowing lawns and the money earned. Taryn mowed 9 lawns. She spent 7.5 hrs mowing lawns. …
5. ### math

During the summer holidays,your brother earns extra money mowing lawns.He mows 6 lawns an hour and has 21 lawns to mow.How long will it take him?
6. ### Microecon

Juan mows lawns in his neighborhood for extra money. Suppose the demand for lawn mowing in Joe’s neighborhood is: QD = 48 – 2P and that the supply of lawn mowing (Juan’s willingness to mow lawns) is: Qs = -12 + P. The market-clearing …
7. ### Algebra 1

erry and ed start a lawn mowing business and purchase mowers and equipment for \$800. They charge \$20 for each lawn and \$4 worth of gas for each job. How many laws must Terry and Ed mow before breaking even?
8. ### Algebra.

Terry and Ed start a lawn mowing business and purchase mowers and equipment for \$800. They charge \$20 for each lawn and \$4 worth of gas for each job. How many laws must Terry and Ed mow before breaking even?
9. ### Math

Terry and Ed start a lawn mowing business and purchase the mowers and equipment for \$1,300. They charge \$15 for each lawn and use \$2 worth of gas for each job. How many lawns must Terry and Ed mow before breaking even?
10. ### math

lola is mowing lawns she mows 2/3 every 1/2 hour, how many lawns does she mow in 6 hours

More Similar Questions