Converse has been fairly successful selling denim colored UK sportswear. Lydia, wanting to get in on the profit, has also entered this market. After producing her profit maximizing level of output she finds that her average total cost per unit is $40, her average variable cost per unit is $30, and her selling price (forced upon her by the market), is $20. In the short run, she should: O go back to college and shut down her denim UK sportswear business. Ostay in business even though she is suffering a loss. O expand production since she is making a positive economic profit. O burn down the Converse factory so she can capture their share of the market and make even bigger profits than the profit she is already making.
Converse has been fairly successful selling denim colored UK sportswear. Lydia, wanting to get in on the profit, has also entered this market. After producing her profit maximizing level of output she finds that her average total cost per unit is $40, her average variable cost per unit is $30, and her selling price (forced upon her by the market), is $20. In the short run, she should: O go back to college and shut down her denim UK sportswear business. Ostay in business even though she is suffering a loss. O expand production since she is making a positive economic profit. O burn down the Converse factory so she can capture their share of the market and make even bigger profits than the profit she is already making.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Perefect Competition
Section: Chapter Questions
Problem 11SQP
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