1) A Manufacturing Company has hired an economist to evaluate its financial situation. She explains to the board of directors that the company is making zero economic profit. Should the company go out of business?
2) The boss observes that her 5 workers produce 8 couches a week. Conncluding that he can employ 10 workers and make 16 couches, 15 to make 24 couches, or 20 to make 32. Explain why this observation is either correct or incorrect.