Q4

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

9 41.10 52.21 30.70 128.00 50.00 1152 469.89 682.11 19.30 Cost Curves
10 40.00 50.00 30.10 128.00 50.00 1280 500 780 19.90 60.00
11 39.10 48.19 30.10 128.00 50.00 1408 530.09 877.91 19.90
12 38.40 46.73 30.70 128.00 50.00 1536 560.76 975.24 19.30
13 37.90 45.59 31.90 128.00 50.00 1664 592.67 1071.33 18.10
14 37.60 44.74 33.70 128.00 50.00 1792 626.36 1165.64 16.30 50.00
15 37.50 44.17 36.10 128.00 50.00 1920 662.55 1257.45 13.90
16 37.60 43.85 39.10 128.00 50.00 2048 701.6 1346.4 10.90
17 37.90 43.78 42.70 128.00 50.00 2176 744.26 1431.74 7.30
40.00
18 38.40 43.96 46.90 128.00 50.00 2304 791.28 1512.72 3.10
19 39.10 44.36 51.70 128.00 50.00 2432 842.84 1589.16 -1.70
20 40.00 45.00 57.10 128.00 50.00 2560 900 1660 -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