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Business, 16.10.2019 02:20 krystalhurst97
Kate's 24-hour breakfast diner menu offers one item, a $5.00 breakfast special. kate's costs for servers, cooks, electricity, food, etc. average out to $3.95 per meal. her costs for rent, insurance cleaning supplies and business license average out to $1.25 per meal. since the market is highly competitive, kate should:
a. keep the business open in the short-run, and plan to expand the business in the long-run
b. raise her prices above the perfectly competitive level set by the market
c. keep the business open in the short-run, but plan to go out of business in the long-run
d. lay-off her staff break her lease, and close the business down immediately
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Answers: 3
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Kate's 24-hour breakfast diner menu offers one item, a $5.00 breakfast special. kate's costs for ser...
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