1.A perfectly competitive market is in short-run equilibrium with price below average total cost. What do you predict the firm's shut down and ext decision will be in the short run and in the long run? Briefly explain.

2.If 11 workers can produce a total of 54 units of a product and a 12th worker has a marginal product of 6 units, what is the average product of 12 workers? Show work.