Order the answer to: A. A profit-maximizing business incurs an economic loss of $10,000

Custom Essays business economics Order the answer to: A. A profit-maximizing business incurs an economic loss of $10,000

business economics

Order the answer to: A. A profit-maximizing business incurs an economic loss of $10,000

Question a. A profit-maximizing business incurs an economic loss of $10,000 per year. Its fixed cost is $15,000 per year. Should it produce or shut down in the short run? Should it stay in the industry or exit in the long run?
b. Suppose instead that this business has a fixed cost of $6,000 per year. Should it produce or shut down in the short run? Should it stay in the industry or exit in the long run?
Subject business economics
Ready to try a high quality writing service? Get a discount here