Question 2Please aim to write approximately 400 words for text and graph analysis.Assume TX Bakery has the following Average cost function;= DVDro + %s = ovWhere Q- Loaves bread produced.Assume also that the market price P= £12 per loaf and that the market is afree market (TX Bakery is a price-taker)7.Is TX Bakery in the short-run or long-run production cycle? Explainyour reasoning.What is the optimal amount of bread to produce?What is the maximum profit given sales?Graph the results to show any profit or loss.

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Question 2 Please aim to write approximately 400 words for text and graph analysis. Assume TX Bakery has the following Average cost function; AC = 5% +0.BQ %3D Where Q Loaves bread produced. Assume also that the market price P= £12 per loaf and that the market is a Tree market (TX Bakery is a price-taker) Is TX Bakery in the short-run or long-nun production cycle? Explain your reasoning. What is the optimal amount of bread to produce? What is the maximum profit given sales? Graph the results to show any profit or loss.

Question 2 Please aim to write approximately 400 words for text and graph analysis. Assume TX Bakery has the following Average cost function; AC = 5% +0.BQ %3D Where Q Loaves bread produced. Assume also that the market price P= £12 per loaf and that the market is a Tree market (TX Bakery is a price-taker) Is TX Bakery in the short-run or long-nun production cycle? Explain your reasoning. What is the optimal amount of bread to produce? What is the maximum profit given sales? Graph the results to show any profit or loss.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 21P

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