Explain why firms may close in Short Run

Val Alvarado, an accountant, quit his $80,000 year job and bought an existing laundry through its earlier owner, he was Ricky White. The lease has five years stayed and needs a monthly payment of $4,000. Val's explicit cost amounts to $3,000 per month more than his revenue. Must Val continue operating his business: w) his (Val’s) explicit cost exceeds his total revenue. He must shut down his laundry. x) Val must continue to run the laundry till his lease runs out.  y) when Val's marginal revenue is greater than or equivalent to his marginal cost, and then he should stay in business. z) it cannot be found without information on his revenue.

Please help me to solve the problem of scarcity that is given above.

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  • Q : Explain why firms may close in Short Run

    Val Alvarado, an accountant, quit his $80,000 year job and bought an existing laundry through its earlier owner, he was Ricky White. The lease has five years stayed and needs a monthly payment of $4,000. Val's explicit cost amounts to $3,000 per month more than his

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