Kay’s dog-walking service is a profit-maximizing, competitive firm. kay walks dogs for $7.50 each. her total cost each day is $45—she spends $35 a day on gas driving to different neighborhoods, and her liability insurance and other fixed costs average out to $10 per day.
if kay walks five dogs a day, she should shut down or operate in the short run?

Because he is able to cover the variable cots, he should keep going in the short run. He must increase the number of walks to cover the fixed costs.

Explanation:

Giving the following information:

Kay walks dogs for $7.50 each. Her total cost each day is $45—she spends $35 a day on gas driving to different neighborhoods, and her liability insurance and other fixed costs average out to $10 per day.

Kay walks five dogs a day.

Income= 7.5*5= $37.5

Total cost= 45

Loss= (7.5)

Because he is able to cover the variable cots, he should keep going in the short run. He must increase the number of walks to cover the fixed costs.

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answer; ///liability;