1. Which types of firms would normally maximize profits along with real-life examples?
2. Should a firm shut down if its weekly revenue is $2,000, its variable cost is $1,000, and its fixed cost is $1,600, of which $1,200 is avoidable if it shuts down? Why?
3. A producer of ballpoint pens has been purchasing ink from an ink supplier and its considering acquiring the ink supplier. Would the pen company be more or less likely to vertically integrate by buying the ink manufacturer if the government taxes ink? Please explain.