Question: This question has two independent parts.

1. Consider the following demand and cost information on a perfectly competitive firm in the short run:
   
   What is the profit-maximizing/loss-minimizing output of the firm? What is the amount of the profit/loss? (4 points)
2. Suppose a perfectly competitive firm in the short run faces an industry price of $10 per unit and its marginal revenue is equal to rising marginal cost at an output of 150 units. The firm's total cost is $ 2000 and total fixed cost is $900.

1. How much output should the firm produce? Explain briefly. (3 points)
2. Suppose fixed costs double to $1800. Should the firm shut down? Explain briefly.

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