The Behavior of Profit-Maximizing Firms (Cost Minimization) Short & Long Run Costs and Output Decisions Case (1): After filling in the columns in the following table. What quantity should a profit- maximizing firm produce? Explain your answer. (6 Marks) Q TFC TVC MC PEMR TR TC Profit 0$ 22$ 20$ 0 1 2 3 4 5 6 10 15 25 42 64 90 Case (2): For each of the following cases (A through C) in the following table, should firms: (1) operate or shut down in the short run and (2) expand or exit the industry in the long run? Firm (A) Firm (B) Firm (C) Total revenue 2,000 2,400 5,000 Total cost 1,500 2,500 7.000 Total fixed cost 500 200 1,500 Case (3): Assume that MP, -5 and MPX - 10. Assume also that P, =S2 and P = $5. This implies that the firm should substitute labor for capital. Explain why! (4 Marks)