Given the cost function for Simon, a housepainter in a competitive local market, below, answer the questions that follow. (You may want to calculate average cost.) . pg58

What is the minimum price per room at which Simon would be earning positive economic profit? At prices below this price, what will Simon’s long run plan be?

Number of Rooms Painted per Week Total Cost 0 $100 1 $120 2 $125 3 $145 4 $200 5 $300 6 $460