Author Question: The Short Run Production DecisionThe graph shows the cost curves for cinnamon.Assume that P1=$2.30, ... (Read 86 times)

Hunchojack2019!! · **on:** Nov 23, 2022

The Short Run Production Decision

The graph shows the cost curves for cinnamon.

Assume that P1=$2.30, P2=$3.50, P3=$4.10, P4=$4.90, Q1=110, Q2=280, and Q3=380.
If price is set to P4 ($4.90), what is the profit-maximizing level of output? The firm earns an economic ________ (profit/loss) equal to ________. At what price does the firm break even? Below what price will the firm shut down in the short run?
Please round your answer to two decimal places.
◦ 280, loss, $1862.00, $2.30, $3.50
◦ 280, profit, $1862.00, $3.50, $2.30
◦ 380, profit, $304.00, $3.50, $2.30
◦ 380, loss, $304.00, $2.30, $3.50

ALuthy · **Reply #1 on:** Nov 23, 2022

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