Question: Hard Bodies Gym (HBG) is one of many "firms" in an industry that is very close to being perfectly competitive. A consultant has estimated the cost functions for HBG, and those functions are represented in the following figure. The going market price is \(p=\\) 16$ per session, and HBG is currently using scale indicated by \(SA C_{1}\).

1. What is HBG’s short-run output?
2. What is HEG’S short-run profit or loss?
3. How many units will HBG produce and what price will it charge in the long-run?
4. What is the incentive for HBG to stay in business if the best it can do is in the long-run is just breakeven?

Price: $2.99

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Deliverable: Word Document