A firm sells 300,000 units per week.It charges $ 35 per unit,the average variable costs are $40,and the average costs are $55.In the long run,the firm should

Name: A firm sells 300,000 units per week.It charges $ 35 per unit,the average variable costs are $40,and the average costs are $55.In the long run,the firm should
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Question

​A firm sells 300,000 units per week.It charges $ 35 per unit,the average variable costs are $40,and the average costs are $55.In the long run,the firm should

Quizplus · Accepted Answer

Since the price of $35 per unit is lower than the average cost of $55 per unit, the firm is making a loss of $20 per unit. Therefore, the firm should shut down in the long run.

​A Firm Sells 300,000 Units Per Week

A Firm Sells 300,000 Units Per Week