66.5k views
3 votes
​Bette's Breakfast, a perfectly competitive​ eatery, sells its​ "Breakfast Special"​ (the only item on the​ menu) for​ $5.00. The costs of​ waiters, cooks,​ power, food, etc. average out to​ $3.95 per​ meal; the costs of the​ lease, insurance, and other such expenses average out to​ $1.25 per meal. Bette should A. lower her output. B. close her doors immediately. C. raise her prices above the perfectly competitive level. D. continue producing in the short​ run, but plan to go out of business in the long run.

User Magentaqin
by
5.3k points

1 Answer

7 votes

Answer:

D. continue producing in the short​ run, but plan to go out of business in the long run.

Step-by-step explanation:

Please see attachment.

​Bette's Breakfast, a perfectly competitive​ eatery, sells its​ "Breakfast Special-example-1
User Izaaz Yunus
by
5.2k points