Q4

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

9 41.10 52.21 30.70 273.00 50.00 2457 469.89 1987.11 19.30 Cost Curves
10 40.00 50.00 30.10 273.00 50.00 2730 500 2230 19.90 60.00
11 39.10 48.19 30.10 273.00 50.00 3003 530.09 2472.91 19.90
12 38.40 46.73 30.70 273.00 50.00 3276 560.76 2715.24 19.30
13 37.90 45.59 31.90 273.00 50.00 3549 592.67 2956.33 18.10
14 37.60 44.74 33.70 273.00 50.00 3822 626.36 3195.64 16.30 50.00
15 37.50 44.17 36.10 273.00 50.00 4095 662.55 3432.45 13.90
16 37.60 43.85 39.10 273.00 50.00 4368 701.6 3666.4 10.90
17 37.90 43.78 42.70 273.00 50.00 4641 744.26 3896.74 7.30
40.00
18 38.40 43.96 46.90 273.00 50.00 4914 791.28 4122.72 3.10
19 39.10 44.36 51.70 273.00 50.00 5187 842.84 4344.16 -1.70
20 40.00 45.00 57.10 273.00 50.00 5460 900 4560 -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