Problem
1. Under what cost condition is the shutdown point the same as the point at which a firm exits the market?
2. A profit-maximizing firm is producing where MR MC and has an average total cost of $4, but it gets a price of $3 for each good it sells.
a. What would you advise the firm to do?
b. What would you advise the firm to do if you knew average variable costs were $3.50?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.