During the summer,Alex runs a lawn-mowing service,and lawn-mowing is a perfectly competitive industry.In the short run,Alex will shut down if the:

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In the short run, Alex will only shut down if total revenues cannot cover variable costs. This is because in the short run, fixed costs are already sunk costs and cannot be recovered, so they do not influence the decision to shut down or continue operating. Only variable costs, such as labor and fuel costs for mowing equipment, must be covered by total revenue to make it worthwhile for Alex to continue operating in the short run.

During the Summer,Alex Runs a Lawn-Mowing Service,and Lawn-Mowing Is a Perfectly