Q4

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

9 41.10 52.21 30.70 263.00 50.00 2367 469.89 1897.11 19.30 Cost Curves
10 40.00 50.00 30.10 263.00 50.00 2630 500 2130 19.90 60.00
11 39.10 48.19 30.10 263.00 50.00 2893 530.09 2362.91 19.90
12 38.40 46.73 30.70 263.00 50.00 3156 560.76 2595.24 19.30
13 37.90 45.59 31.90 263.00 50.00 3419 592.67 2826.33 18.10
14 37.60 44.74 33.70 263.00 50.00 3682 626.36 3055.64 16.30 50.00
15 37.50 44.17 36.10 263.00 50.00 3945 662.55 3282.45 13.90
16 37.60 43.85 39.10 263.00 50.00 4208 701.6 3506.4 10.90
17 37.90 43.78 42.70 263.00 50.00 4471 744.26 3726.74 7.30
40.00
18 38.40 43.96 46.90 263.00 50.00 4734 791.28 3942.72 3.10
19 39.10 44.36 51.70 263.00 50.00 4997 842.84 4154.16 -1.70
20 40.00 45.00 57.10 263.00 50.00 5260 900 4360 -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