Alejandros lawn mowing service is a profit-maximizing, competitive firm. Alejandro mows lawns for 27 each. His total
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Alejandro’s lawn mowing service is a profit-maximizing, competitive firm. Alejandro mows lawns for €27 each. His total cost each day is €280, of which €30 is a fixed cost. He mows 10 lawns a day. What can you say about Alejandro’s shortrun decision regarding shutdown and his long-run decision regarding exit?
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