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    Managerial Economics Decision Making

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    A firm produces three products A, B, and C. Long-run projected sales per year are 10,000 units of A, 12,000 units of B, and 8,000 of C. Determine whether the firm should remain in business under the following conditions:
    ? Good A sells at $5.00 per unit, and AVC is $3.50.
    ? Good B sells at $7.50 per unit, and AVC is $5.00.
    ? Good C sells at $10.00 per unit, and AVC is $7.50.
    ? Total fixed cost is $60,000 per year.

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    Solution Summary

    The expert examines managerial economics for decision making.