6. Suppose that Ahmad owns a pizza shop in Ajman. He sells 60 pizzas per day for 20 UAD each. His daily total cost is 1000 UAD, of which 75 UAD is fixed cost. What can you say about Ahmad's short-run decision regarding shut down and his long-run decision regarding exit? Prove your answers with your calculations.

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Explicit and Implicit Cost Analysis

The entire idea of the cost of production or production cost is applied corresponding or we can say that it is related to money cost. Money cost refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factors of production or factor services.