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From the scenario, find out the relevant costs for the expansion decision, and differentiate between the short run and the long run costs. Propose the key decision-making criteria which Katrina's Candies must use for expansion decisions in the short run and in the long run. Give rationale for your response. From the e-Activity, suggest whether the company in problem should or should not continue to produce the service or good. Give a rationale for your response.

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