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Suppose you have recently opened a consulting business.  Eac…

Suppose you have recently opened a consulting business.  Each of the parts to this question provides data for a different firm that has sought out your services. (Each part is independent of the other parts.  Each of these firms are operating in perfectly competitive industries.  The objective of these firms (as usual) is to maximize profits (or minimize losses).  Your job, as a consultant, is to suggest an appropriate course for the firm to follow.  The options available are: Firm is now at correct position (change nothing),  Firm should increase price, Firm should decrease price, Firm should increase quantity of output produced and sold, Firm should decrease quantity of output produced and sold, Firm should shut down operations,  Firm gave you inconsistent / incorrect info. You must show your work to receive credit.

  Belinda is the owner of a department store. Last year, her…

  Belinda is the owner of a department store. Last year, her total revenue was $525,000 and her total labor costs were $200,000. Her overhead expenses, including insurance and legal fees, were $175,000. The rent on the building was $40,000. Belinda could earn $100,000 per year working at a nearby department store. If her total revenue increases to $600,000 this year and all of her other expenses are held constant, we know that her economic profit is now

  Suppose a perfectly competitive paper firm can produce six…

  Suppose a perfectly competitive paper firm can produce six tons of paper at an output level where marginal revenue is equal to marginal cost. The price per ton of paper is $100 and the average total cost is $75. What is the total profit or loss that the paper firm is earning?