Say you owned the Black Dog BBQ restaurant. After two months of being in business you...

Say you owned the Black Dog BBQ restaurant. After two months of being in business you are selling enough to pay your employees (your only variable input), but not enough to pay the loan you took to open the restaurant. Given this, you should:

increase the price of BBQ sandwiches

lower the price of your BBQ sandwiches

keep the restaurant open

close the restaurant

Solutions

Expert Solution

We are producing at the price above the average variable cost and lower than the average total cost, they will continue producing and keep the restaurant open in the market.

the answer is "C".

Rahul Sunny answered 1 year ago

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