If a firm’s total revenue is $5 billion, its fixed costs are $3 billion, and its variable costs are $1.5 billion, what does it do (a) in the short run and (b) in the long run?
2. If a firm’s total revenue is $20 million, its fixed costs are $12 million, and its variable costs are $22 million, what does it do (a) in the short run and (b) in the long run?
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