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What is the primary difference between a short run shutdown and a long run exit decision?
If the price is \$20 and the average total cost is \$18, what is the firm's profit per unit?
On a cost curve graph, if the price is above the average total cost, what should the firm do in the short run and long run?
Why is the average total cost curve significant in long run market entry and exit decisions?
In the long run, how does the absence of fixed costs affect a firm's production decision?
Under what condition will a firm exit a market in the long run?
How does the absence of fixed costs in the long run influence a firm's decision to produce?
On a cost curve graph, if the price is below the average total cost but above the average variable cost, what should the firm do in the short run and long run?
A tech company is considering entering a market where the average total cost is \$50 per unit, and the expected price is \$55 per unit. What should the company do, and what are the implications?
If a firm's economic profit is zero, what does this imply about its long run production decision?