Suppose you start a business of manufacturing computer software. Assume that this computer software company is a perfectly competitive firm. Your fixed cost per month is Tk. 60,000 and total cost is Tk. 140,000. If you sell 1000 software per month and the average revenue is Tk. 90, what should be your short-run decision regarding shut down and long run decision regarding exit?

Suppose you start a business of manufacturing computer software. Assume that this computer software company is a perfectly competitive firm. Your fixed cost per month is Tk. 60,000 and total cost is Tk. 140,000. If you sell 1000 software per month and the average revenue is Tk. 90, what should be your short-run decision regarding shut down and long run decision regarding exit?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 2PA

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