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Pastry Paradise is looking to expand. It decides to take over Sweet Tooth, a competitive firm....

Pastry Paradise is looking to expand. It decides to take over Sweet Tooth, a competitive firm. The two firms have similar technology but different costs. Pastry Paradise has $1800 fixed costs and $2 marginal cost per unit produced. Sweet Tooth has $600 fixed costs but $3 marginal cost per unit produced.

a. write the cost function for pastry paradise and sweet tooth.

b. at what price level should pastry paradise consider shutting down in short run.

c. at what price level should pastry paradise consider shutting down in long run

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