ECO550 Week 4 Discussion 1 and 2

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Question 1

“Production Economics” Please respond to the following:

From the scenario for Katrina’s Candies, determine the relevant costs for the expansion decision, and distinguish between the short run and the long run costs. Recommend the key decision-making criteria that Katrina’s Candies should use for expansion decisions in the short run and in the long run. Provide rationale for your response.

Discussion 2

“Production Decisions” Please respond to the following:

From the e-Activity, recommend whether the company in question should or should not continue to produce the good or service. Provide a rationale for your response.