2. What is the lowest price you would be willing to START producing this new 5. If the price per picture frame was fixed at $18.00, what would you do in the product if you were not already in this business? Be precise, Don't round up to SHORT RUN? Again, remember that you have to keep paying your fixed costs in the nearest dollar. (1 mark) the short run. Fill in the table completely and state what level of production you 3. If you were already committed to the fixed costs, how low could the price per would use State what is your profit at this level? (1 mark) picture frame fall before you would consider shutting down production? Remember, in the SHORT RUN, you have In keep paying your fixed costs whether you produce any picture frames or not. If you can cover your variable FC + VC Profit or # of price Loss costs, then anything over that will reduce your fixed costs. You may be losing Workers money in the short run but you are losing less money. (1 mark) TR AR TC TP For Questions 4 to 7, you need to fil in the table for each question. You need to 1 2 STATE how many workers, the level of production and the profit you will make. Your costs, quantities and # of workers will be the same as you calculated in W Question 1. 4. If the price per picture frame was fixed at $25, what would you do? Remember, in 6 the short run you can't alter fixed costs, you can just decide where to set the level of production, You need to calculate total revenue and profit or loss for each level as you are given the average revenue. Remember to state both what level of production you would choose and what dollar profit you would make. (1 6. If the price per picture frame were fixed at $16.00, what would you do in the mark) SHORT RUN? Fill in the chart and state what level of production you would use and the associated profit (1 mark). price FC + VC Profit or Workers Loss TR AR TC TP Profit or #of BxQ price FC + VC Loss Workers TR AR TC TP 1 3