Question: Problem P55.1.5 3 points possible [graded] Your rm specializes in recycling used plastics into consumer goods. You have three production opportunities: 1. You can produce
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Problem P55.1.5 3 points possible [graded] Your rm specializes in recycling used plastics into consumer goods. You have three production opportunities: 1. You can produce plastic utensils for a revenue of $30,000 while production will cost $15,000. 2. Altemalively, you can produce lampshades: you calculate that at the optimal production, you expectto sell 2,000 lampshades every year at $10 eachr and your average total cost per lampshade will be $2. 3. You also have the option to shut down your factory and produce nothing at a cost of $1,000 a year. Which opportunity do you choose? You produce plastic utensils 0 You produce lampshades You shut down What is your accounting profit? What is your economic profit?I
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