1. Business
2. Economics
3. if a profit maximizing company has a fixed cost of...

# Question: if a profit maximizing company has a fixed cost of...

###### Question details
If a profit maximizing company has a fixed cost of $3000 and an average variable cost of$40 but a maximum output capacity of 50 should they shut down or make 50 outputs at prices above \$40? They cannot avoid fixed costs in the short run but can avoid them in the long run by shutting down.