1) A firm sells 1,000 units per week. Suppose the average variable cost is $40, and the average cost is $95. In the short run, the break-even price is . In the long run, the break-even price is .
2) Suppose the firm charges a price of $110 per unit.
In the short run, should they continue to produce or shut down?
In the long run, should they continue to produce or shut down?

Hank itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. the following are required for production of a 70-gallon batch. 2,700 ounces of grape concentrate at $0.04 per ounce 77 pounds of granulated sugar at $0.43 per pound 133 lemons at $0.79 each 350 yeast tablets at $0.24 each 350 nutrient tablets at $0.14 each 2,500 ounces of water at $0.001 per ounce hank estimates that 4% of the grape concentrate is wasted, 9% of the sugar is lost, and 32% of the lemons cannot be used. compute the standard cost of the ingredients for one gallon of wine. (round intermediate calculations and final answer to 2 decimal places, e. g.