As a consultant, you have been asked to evaluate three new companies. The company managers have collected some basic data about the firm. In each case, make a solid economic recommendation about what the firm should do and whether you would invest in the firm. Interestingly, in each company, the initial startup costs were the same: $25,000
A. Firm 1
| Q | TC |
|---|---|
| 1000 | 48000 |
| 1100 | 52500 |
The product sells for $50
B. Firm 2
| Q | TC |
|---|---|
| 1000 | 34500 |
| 1100 | 36000 |
The product sells for $12
C. Firm 3
| Q | TC |
|---|---|
| 1000 | 62000 |
| 1100 | 63500 |
The product sells for $12