Fixed cost is $100 per day. Suppose that the price at which Katie can sell catered meals is $21 per meal. In the short run, will Katie earn a profit? If yes, what is the amount of economic profit? (c) What is the break-even price and the shut-down price in the short run? (d) Suppose that the price at which Katie can sell catered meals is $13 per meal. In the short run, will Katie earn a profit? In the short run, should she produce or shut down?

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