8) Ahmad Steak Sandwiches competes in a perfectly competitive market. Ahmad's fixed costs are sunk. His total cost schedule is as shown in the table below:

Output (Sandwiches per hour)

Total Cost (dollars per hour)

0

14

1

36

2

47

3

62

4

80

5

104

6

128

a)(5 pts) Calculate Ahmad's profit maximizing output and profit if the price of the steak sandwich is $17.

b)(2.5 pts) At what price will Ahmad shut-down in the short-run?

c)(2.5 pts) At what price will Ahmad exit in the long-run?

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8) Ahmad Steak Sandwiches competes in a perfectly competitive market. Ahmad's fixed costs are sunk. His total cost schedule is as shown in the table below: Output (Sandwiches Total Cost (dollars per hour) per hour) 0 14 1 36 2 47 3 62 4 80 5 104 6 128 a) (5 pts) Calculate Ahmad's profit maximizing output and profit if the price of the steak sandwich is $17. b) (2.5 pts) At what price will Ahmad shut-down in the short-run? c) (2.5 pts) At what price will Ahmad exit in the long-run