Continue operating in the short-run and long-run

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Susan quit her job as a teacher, which paid her $36,000 per year in order to start her own catering business. She spent $12,000 of her savings, which had been earning 10% interest per year, on equipment for her business. She also borrowed $12,000 from her bank at 10% interest, which she also spent on equipment. For the past several months she has spent $1,000 per month on ingredients and other variables costs. Also for the past several months she has taken in $3500 in monthly revenue. Should Susan continue operating in the short-run and long-run? Draw graphs to illustrate your point(s).

Reference no: EM131099853

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