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Short-run decision regarding shut-down

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Reference no: EM131706340

Mike's Cafe is a profit-maximizing, competitive coffee shop. Mike charges $2 per cup. His total cost each day is $150, of which $75 is a fixed cost. He sells 50 cups a day. What can you say about Mike's short-run decision regarding shut-down and his long-run decision regarding exit?

Reference no: EM131706340

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