(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
In the last part, you were asked to find Kate's shut-down and break even prices. Now you have to determine Kate's short-run and the long-run production decisions when price is 21 dollars.
(Description)
The following text is written:
Suppose that the price at which Kate can sell catered meals is 21 dollars per meal. In the short run, will Kate earn a profit? In the short run, should she produce or shut down?
The table from the previous slide is shown.
(Speaker)
If Kate is able to sell each meal for 21 dollars she will produce in the short-run as this price exceeds her break even price of 15 dollars per meal.
(Description)
A cell at the intersection of the third row and the column AVC of meal with the value, 15.00 dollars, is highlighted.
The following text is written above the table:
Shut down if P is less than minimum of AVC
Break even if P equals minimum of ATC
(Speaker)
She will continue to produce in the long-run as 21 dollars exceed her break even price of 19 dollars 33 cents
(Description)
A cell at the intersection of the third row and the column ATC of meal with the value, 19 dollars 33 cents, is highlighted.
(Speaker)
She will produce 30 meals and earn a profit of 1.67 dollars per meal.
(Description)
The following text is written below the table:
21 dollars is greater than the minimum of ATC, so Kate will earn a profit and should produce in the short-run. Kate will earn a profit of 1.67 dollars (21.00 dollars minus 19.33 dollars).