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.
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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