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4 (14") Bob produces Blu-ray movies for sale, which requires a building and a machine that copies the original movie onto a Blu-ray. Bob rents a building for $30,000 per month and rents a machine for $20,000 a month. Those are his fixed costs. His variable cost per month is given in the accompanying table. Assume that Blu-ray production is a perfectly competitive industry. For each of the following questions, explain your answers, a. (4') What is Bob's break-even price? What is his shut-down price? b. (2) Suppose the price of a Blu-ray is $2.8. What should Bob do in the short run? Why? c. (4") Suppose the price of a Blu-ray is $7. What is the profit maximizing quantity of Blurays that Bob should produce? What will his total profit be? Will he produce or shut down in the short run? Will he stay in the industry or exit in the long run? d. (4') Suppose instead that the price of Blu-rays is $20 Now what is the profit maximizing quantity of Blu rays that Bob should produce? What will his total profit be now? Will he produce or shut down in the short run? Will he stay in the industry or exit in the long run? VC Quantity of Blu-rays 0 1.000 2,000 3,000 4,000 5.000 50 5.000 8,000 9,000 14,000 20.000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 8,000 9,000 14,000 20,000 33,000 49,000 72,000 99,000 150,000 Please write your answer on a blank paper, take a picture of your answers and then upload the pictures as an attachment to the corresponding answer box in Chaoxing