Assume that the following data is for a profit-maximizing manufacturer:

Quantity total cost

0 100

1 140

2 160

3 190

4 240

5 300

6 370

7 450

8 550

a.Does this manufacturer operate in the short-run or in the long-run? Explain.

b.If this manufacturer shuts down what would be the profit or loss?

c.If the price is $75 per unit, what are the profit maximizing output and the level of profit or loss?

d.If the price is $55 per unit, what are the profit maximizing output and the level of profit or loss?

e.What is the value of the break-even price?