1. 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.
2. Select a business that you are interested in, and use the Internet and Strayer databases to locate information regarding fixed and variable costs of operating the business (e.g., rent, salaries, wages, etc.). Recommend whether the company in question should or should not continue to produce the good or service. Provide a rationale for your response.
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