Q4

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

9 41.10 52.21 30.70 262.00 50.00 2358 469.89 1888.11 19.30 Cost Curves
10 40.00 50.00 30.10 262.00 50.00 2620 500 2120 19.90 60.00
11 39.10 48.19 30.10 262.00 50.00 2882 530.09 2351.91 19.90
12 38.40 46.73 30.70 262.00 50.00 3144 560.76 2583.24 19.30
13 37.90 45.59 31.90 262.00 50.00 3406 592.67 2813.33 18.10
14 37.60 44.74 33.70 262.00 50.00 3668 626.36 3041.64 16.30 50.00
15 37.50 44.17 36.10 262.00 50.00 3930 662.55 3267.45 13.90
16 37.60 43.85 39.10 262.00 50.00 4192 701.6 3490.4 10.90
17 37.90 43.78 42.70 262.00 50.00 4454 744.26 3709.74 7.30
40.00
18 38.40 43.96 46.90 262.00 50.00 4716 791.28 3924.72 3.10
19 39.10 44.36 51.70 262.00 50.00 4978 842.84 4135.16 -1.70
20 40.00 45.00 57.10 262.00 50.00 5240 900 4340 -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