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Should your company operate or shutdown in the shortrun

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Reference no: EM132243963

Suppose you are the manager of a company that makes and delivers pre-packaged sandwiches. The market is perfectly competitive, with each meal selling at $5. Your company's estimated total cost function is

C(Q) = 12,000 + 10Q - 0.003Q2 + 0.0000005Q3

Where Q represents the company's daily output.

a. To maximize profit (minimize loss), how many sandwiches should you make and sell per day?

b. If this number were produced and sold, what would be you daily profit (loss)?

c. Should your company operate or shutdown in the shortrun?

Reference no: EM132243963

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