3) Christine’s photography business is a profit-maximizing competitive firm. Christine takes photos for $150 a session. Her variable cost for each session is $50 and she has a fixed cost of $2500 for equipment. Christine had 22 sessions last year. Calculate Christine’s economic profit. What can you say about Christine's short-run decision regarding shutdown and her long-run decision regarding whether to remain in the market or to exit the market?

Answer rating: 100% (QA)

To calculate Christines economic profit we first need to find her total revenue total variable cost ... View the full answer