Should it stay in the industry or exit in the long run? 1 answer below »


a. A profit-maximizing affair incurs an economic forfeiture of $10,000 per year. Its agricultural absorb is $15,000 per year. Should it consequence or close down in the inadequate run? Should it arrive in the perseverance or debouchure in the hanker run?

b. Suppose instead that this affair has a agricultural absorb of $6,000 per year. Should it consequence or close down in the inadequate run? Should it arrive in the perseverance or debouchure in the hanker run?