Bob runs a pedicure business in a perfectly competitive industry.He knows that he will break even if the price of pedicures is $15 but that he will have to shut down if the price is $11.If the market demand in the industry is P = 30 - (0.2)Q and the market supply is P = (0.2)Q, then in the short run, Bob will:
A.shut down, since he cannot cover any of his variable costs.
B.produce, since he is at his break-even level.
C.produce with a loss, since he is operating at a price below his break-even level.
D.shut down, although he is making a positive economic profit.

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The Answer of Bob runs a pedicure business in a perfectly competitive industry.He knows that he will break even if the price of pedicures is $15 but that he will have to shut down if the price is $11.If the market demand in the industry is P = 30 - (0.2)Q and the market supply is P = (0.2)Q, then in the short run, Bob will:
A.shut down, since he cannot cover any of his variable costs.
B.produce, since he is at his break-even level.
C.produce with a loss, since he is operating at a price below his break-even level.
D.shut down, although he is making a positive economic profit.

Bob Runs a Pedicure Business in a Perfectly Competitive Industry