Cost-minimizing level of output

Reference no: EM13199736

Bubba's Burgers sells hamburgers in a perfectly competitive market at a price of $1.50 each. At the profit-maximizing cost-minimizing level of output, average total cost is $1.90 per hamburger and average variable cost is $1.75 per hamburger.

Should the firm continue to operate in the short run? Explain.

Reference no: EM13199736

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