Question 1; NAPA Corporation's marginal cost is expressed by MC = 4 + 3Q, where MC is marginal cost and Q is the number of products produced. The price of a unit of its products is $3. If you are the consultant for the company, would you advise the firm to produce or shut down? Briefly explain your decision.

Question 2: Dashen Company is a monopoly that produces at two plants. The demand for its product is given by P = 20 - Q. The marginal cost of plant 1 is MC₁= 2, and the marginal cost of plant 2 is MC₂= 2Q₂.

1. How much output does the firm produce at each plant?
2. What price should it charge for its product?