PS5.1.5

Problem PS5.1.5 3 points possible (graded) Your firm 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. Alternatively, you can produce lampshades: you calculate that at the optimal production, you expect to sell 2,000 lampshades every year at $10 each, 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 You produce lampshades You shut down What is your accounting profit? What is your economic profit? Save Submit You have used 0 of 2 attempts