Bob's lawn-mowing service is a profit-maximizing, competitive firm. Bob mows lawns for $30 each. His total cost each day is $250, of which $50 is a fixed cost. He mows 5 lawns a day. In the short run, Bob should_ . In the long run, Bob should___ the industry.

The general rule is that if the selling price is higher than the unitary variable cost, in the short run the company should continue operations. If this situation continues, in the long run, the company should stop operations.

In this case, the unitary variable cost is higher than the selling price. In the short run, Bob should leave the industry.

Bob's lawn-mowing service is a profit-maximizing, competitive firm. Bob mows lawns for $30 each. His total cost each day is $250, of which $50 is a fixed cost. He mows 5 lawns a day. In the short run, Bob should_________ . In the long run, Bob should___________ the industry.

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Bob's lawn-mowing service is a profit-maximizing, competitive firm. Bob mows lawns for $30 each. His total cost each day is $250, of which $50 is a fixed cost. He mows 5 lawns a day. In the short run, Bob should_ . In the long run, Bob should___ the industry.