Problem 1:At a recent meeting the president and the CEO of Production Inc. got i

Problem 1:At a recent meeting the president and the CEO of Production Inc. got into a heated argument about whether or not to shut down the companys plant inFlintMichigan. The plant currently loses $50000/month. The president of Production Inc. argued that the plant should continue to operate until a buyer is found for the facility. This argument was based on the fact that the plants fixed costs are $61000/month. The CEO disagreed over this point arguing that fixed costs do not matter in making the shutdown decision.Problem 2:A monopolist has determined that marginal revenue is $2.00 and average cost is $1.75. It has also determined that the lowest sustainable average cost is $1.75. To maximize profit should the firm lower its price increase its price or leave the price unchanged? How would you change your response if marginal revenue is $1.50? Explain your responses