questions

Mandy breeds partridges for a living. She operates in a perfectly competitive industry. Production costs for Mandy are as follows: Output TVC TC MC AVC ATC 0 100 10 300 400 30 20 500 600 20 30 600 700 10 40 900 1,000 30 50 1500 1,600 60 60 2200 2,300 70 70 3100 3,200 190 a) (3) Characterize the long run equilibrium in the industry Mandy operates in. Specify the (i) long run equilibrium price and outpput (ii) profit (in long run equilibrium) b) (2) Presently, a partridge sells for $45. How many partridges should Mandy sell per month? What are her profits or losses? c) (2) If the price drops as low as $15. should Mandy produce or shut down in the short run? Explain