Continue producing in the short and long run

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Reference no: EM13896705

Bob’s Breakfast, a perfectly competitive restaurant, sells its Breakfast Special (the only item on the menu) for $5.00. The costs of waiters, cooks, power, food, etc. average out to $3.95 per meal. The costs of the lease, insurance and other such expenses average out to $1.25 per meal. Bob should:

A. close his doors immediately

B. continue producing in the short run, but plan to go out of business in the long run

C. continue producing in the short and long run

D. raise his prices above the perfectly competitive level

E. lower his output

Reference no: EM13896705

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Continue producing in the short and long run : Bob’s Breakfast, a perfectly competitive restaurant, sells its Breakfast Special (the only item on the menu) for $5.00. The costs of waiters, cooks, power, food, etc. average out to $3.95 per meal. The costs of the lease, insurance and other such exp..

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