Q4

Q AVC AC MC P MR TR TC Total Profit Marginal Profit

9 41.10 52.21 30.70 107.00 50.00 963 469.89 493.11 19.30 Cost Curves
10 40.00 50.00 30.10 107.00 50.00 1070 500 570 19.90 60.00
11 39.10 48.19 30.10 107.00 50.00 1177 530.09 646.91 19.90
12 38.40 46.73 30.70 107.00 50.00 1284 560.76 723.24 19.30
13 37.90 45.59 31.90 107.00 50.00 1391 592.67 798.33 18.10
14 37.60 44.74 33.70 107.00 50.00 1498 626.36 871.64 16.30 50.00
15 37.50 44.17 36.10 107.00 50.00 1605 662.55 942.45 13.90
16 37.60 43.85 39.10 107.00 50.00 1712 701.6 1010.4 10.90
17 37.90 43.78 42.70 107.00 50.00 1819 744.26 1074.74 7.30
40.00
18 38.40 43.96 46.90 107.00 50.00 1926 791.28 1134.72 3.10
19 39.10 44.36 51.70 107.00 50.00 2033 842.84 1190.16 -1.70
20 40.00 45.00 57.10 107.00 50.00 2140 900 1240 -7.10

Cost ($)
30.00 AVC
AC
MC
Ans Q4 (B)
20.00
Total profit = 108.72

So the firm will Enjoy Economic Profits

10.00

0.00
0 5 10 15 20 25
Quantity

Cost Curves
60.00
Q AVC AC MC P MR TR TC Total Profit Marginal Profit
9 41.10 52.21 30.70 35.00 35.00 315 469.89 -154.89 4.30
10 40.00 50.00 30.10 35.00 35.00 350 500 -150 4.90
11 39.10 48.19 30.10 35.00 35.00 385 530.09 -145.09 4.90 50.00
12 38.40 46.73 30.70 35.00 35.00 420 560.76 -140.76 4.30
13 37.90 45.59 31.90 35.00 35.00 455 592.67 -137.67 3.10
14 37.60 44.74 33.70 35.00 35.00 490 626.36 -136.36 1.30
15 37.50 44.17 36.10 35.00 35.00 525 662.55 -137.55 -1.10 40.00
16 37.60 43.85 39.10 35.00 35.00 560 701.6 -141.6 -4.10
17 37.90 43.78 42.70 35.00 35.00 595 744.26 -149.26 -7.70
18 38.40 43.96 46.90 35.00 35.00 630 791.28 -161.28 -11.90
Cost ($)

19 39.10 44.36 51.70 35.00 35.00 665 842.84 -177.84 -16.70 30.00 AVC
20 40.00 45.00 57.10 35.00 35.00 700 900 -200 -22.10 AC
MC

20.00
Ans Q4 (C)

Total profit = 108.72

10.00
CM = TR - TVC = 490 - (37.6 x 14) = -36.4

So the firm must Shutdown its operation

0.00
0 5 10 15 20 25
Quantity