Business, 05.05.2020 18:00 pikachu4111

For the past nine months, Delores has been producing frozen yogurt out of her small kitchen shop in Detroit. She's been just breaking even (earning zero economic profit) that entire time. This morning, the state Board of Health informed her that they are doubling the annual fee for the food preparation license she operates under, retroactive to the beginning of her operations. Which of the following statements is true?

• In the short run, Delores should increase output; in the long run, she may need to consider exiting the market

• In the short run, Delores should leave output unchanged; in the long run, she may need to consider exiting the market.

• In the short run, Delores should leave the market; in the long run, she may want to return to the market

• In the short run, Delores should decrease output; in the long run, she may need to consider exiting the market

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For the past nine months, Delores has been producing frozen yogurt out of her small kitchen shop in...

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