Total var. (a) At a product price of $52, will this firm produce in the short run? Explain. What will its profit or loss be?

Total var. (a) At a product price of $52, will this firm produce in the short run? Explain. What will its profit or loss be? - Yes, the company will produce in the short run, because the profits cover the marginal costs. In the perfect competition, the profits will be $17.0 per jeans at the 5th and 6th units. The total profits are maximized at this price and with the production of 7 units. (b) At a product price of $28, will this firm produce in the short run? Explain. What will its profit or loss be?