2.Your firm specializes in recycling used plastics into consumer goods. You have three production opportunities: 1. You
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Question:
2.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?
A. You produce plastic utensils
B. You produce lampshades
c. You shut down
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