Q4

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

9 41.10 52.21 30.70 113.00 50.00 1017 469.89 547.11 19.30 Cost Curves
10 40.00 50.00 30.10 113.00 50.00 1130 500 630 19.90 60.00
11 39.10 48.19 30.10 113.00 50.00 1243 530.09 712.91 19.90
12 38.40 46.73 30.70 113.00 50.00 1356 560.76 795.24 19.30
13 37.90 45.59 31.90 113.00 50.00 1469 592.67 876.33 18.10
14 37.60 44.74 33.70 113.00 50.00 1582 626.36 955.64 16.30 50.00
15 37.50 44.17 36.10 113.00 50.00 1695 662.55 1032.45 13.90
16 37.60 43.85 39.10 113.00 50.00 1808 701.6 1106.4 10.90
17 37.90 43.78 42.70 113.00 50.00 1921 744.26 1176.74 7.30
40.00
18 38.40 43.96 46.90 113.00 50.00 2034 791.28 1242.72 3.10
19 39.10 44.36 51.70 113.00 50.00 2147 842.84 1304.16 -1.70
20 40.00 45.00 57.10 113.00 50.00 2260 900 1360 -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