Question: a firm sells 1000 units per week suppose the average...
A firm sells 1,000 units per week. Suppose the average variable cost is $25, and the average cost is $60.
In the short run, the break-even price is ? . In the long run, the break-even price is ?
Suppose the firm charges a price of $42 per unit.
Use the following table to indicate whether the firm will shut down or continue to produce in the short run and the long run.
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