Question: Question 2 (3 points) You are given the following Information for Anipuk Inc. which operates in a competitive market in the short run. Consider all

Question 2 (3 points) You are given the following Information for Anipuk Inc. which operates in a competitive market in the short run.

Consider all three situations. Situation 1 Situation 2 Situation 3 Price $10

$10 $10 Quantity 1,000 1,000 1,000 Variable cost $5,000 $5,000 $1 1,000

Question 2 (3 points) You are given the following Information for Anipuk Inc. which operates in a competitive market in the short run. Consider all three situations. Situation 1 Situation 2 Situation 3 Price $10 $10 $10 Quantity 1,000 1,000 1,000 Variable cost $5,000 $5,000 $1 1,000 Fixed cost $5,000 $6,000 $5,000 Marginal cost of 1,000th unit $10 $10 $10 As a member of the Evets K. Consulting team, you are asked to use this information to answer the following questions: 1. Is the firm producing at the profit maximizing level of output in all three situations? Explain? 2. In which situation is the firm breaking even? Explain? 3. In which situation is the firm incurring an economic loss, and will shut down at least temporarily? Explain.As a member of the Evets K. Consulting team, you are asked to use this Information to answer the following questions: 1. Is the firm producing at the profit maximizing level of output in all three situations? Explain? 2. In which situation is the firm breaking even? Explain? 3. In which situation is the firm incurring an economic loss, and will shut down at least temporarily? Explain. Paragraph BIUA +

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