Marketing its new product at a price of 25.00 per unit, Ask an Expert

Economics

Suppose a small firm has invested $10 million in total fixed cost and another $18 million in total variable cost. The firm has started marketing its new product at a price of $25.00 per unit; however, the average variable cost of the product is $30.00. Should this firm shut down? Why or why not?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M940603

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