Discuss the below:
Q: Tulip growing is perfectly competitive and all growers have the same costs. The market price is $ 25 a bunch, and each grower maximizes profit by producing 2000 bunches a week. Average total cost is $ 20 a bunch, and average variable cost is $ 15 a bunch. Minimum average variable cost is $ 12 a bunch.
a) What is economic profit that each grower is making in the short run?
b) What is the price at the grower's shutdown point?
c) What is each grower's economic profit at the shutdown point?