Alice has been sent to troubleshoot another product: Vulcanite, which is produced at a plant in California. The price of Vulcanite is 70 and the Vulcanite market is competitive.

This plant incurs these short-run costs:

• spending on capital: 300 zoning tax:
• a fixed fee of 300 paid to the local government
• operating (labor) expenses:

Since the price of Vulcanite is 70, what is the optimal output level? Will the plant generate a profit?

With, should Alice recommend that the plant continue operating or shut down? How does she come to this recommendation?