2. A local snow cone business sells snow cones in one size for $3 each. It has the following cost and output structure per hour:

Output (cones per hour) Total cost (per hour)

0 $60 10 $90 20 $110 30 $120 40 $125 50 $135 60 $150 70 $175 80 $225

a. Calculate the total revenue for the business at each rate of output.

b. Calculate the total profi t for the business at each rate of output.

c. Is the business operating in the short run or the long run?

d. Calculate the profi t-maximizing rate of output using the MR = MC rule. (Hint: to do this, you should fi rst compute the marginal revenue and marginal cost from the table.)