Lee, J Brand, Joe's Jeans, Paper Denim & Cloth, Levi's, Wrangler, and many others are all producers of jeans. J Brand jeans sell for $200 a pair. Suppose at the short-run profit maximizing quantity, J Brand's ATC was $180 and AVC was $100, which statement is TRUE?
A) J Brand will produce in the short and long run.
B) J Brand will produce in the short run but go out of business in the long run.
C) J Brand will shut down in the short run and go out of business in the long run.
D) J Brand will produce in the short run and shut down in the long run.
Correct Answer:
Verified
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