Suppose the estimated fixed cost of Christmas trees business is $7,000 and not sunk.The estimated variable cost for each tree is $20.According to the forecast,the market price for Christmas trees is $25 each and the owner could sell 1000 trees at most each year.In the long run,the owner

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In the long run, the owner should shut down because the estimated fixed cost of $7,000 is not sunk and the estimated variable cost of $20 per tree exceeds the market price of $25 per tree.

Suppose the Estimated Fixed Cost of Christmas Trees Business Is