Other things constant should your friend continue to
· Average Fixed Cost = $2
· Average Variable Cost = $1
· Marginal Revenue = $1.50
a) Other things constant, should your friend continue to operate in the winter months? Be sure to explain to her why she should or should not continue to operate.
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Suppose that the current one-year rate (one-year spot rate) and expected one-year T-bill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows: 1R1=6%, E(2r1)=7%, E(3r1)=7.5%, E(4r1)=7.85%
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Other things constant, should your friend continue to operate in the winter months? Be sure to explain to her why she should or should not continue to operate
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