Question: For Bob, his total variable cost would be his total costs for each day minus his fixed cost which is $280-$30=$250. Therefore, his average variable

For Bob, his total variable cost would be his total costs for each day minus his fixed cost which is $280-$30=$250. Therefore, his average variable cost is his total variable cost for each day divided by the number of lawns that he mows each day which is $250/10=$25. Since his average variable cost is less than his price, he will not need to shut down in the short run.

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