1) A firm sells 1,000 units per week. Suppose the average variable cost is $40, and the average cost is $95.
In the short run, the break-even price is _______. In the long run, the break-even price is _______.
2) Suppose the firm charges a price of $110 per unit.
In the short run, should they continue to produce or shut down?
In the long run, should they continue to produce or shut down?