Q4

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

9 41.10 52.21 30.70 276.00 50.00 2484 469.89 2014.11 19.30 Cost Curves
10 40.00 50.00 30.10 276.00 50.00 2760 500 2260 19.90 60.00
11 39.10 48.19 30.10 276.00 50.00 3036 530.09 2505.91 19.90
12 38.40 46.73 30.70 276.00 50.00 3312 560.76 2751.24 19.30
13 37.90 45.59 31.90 276.00 50.00 3588 592.67 2995.33 18.10
14 37.60 44.74 33.70 276.00 50.00 3864 626.36 3237.64 16.30 50.00
15 37.50 44.17 36.10 276.00 50.00 4140 662.55 3477.45 13.90
16 37.60 43.85 39.10 276.00 50.00 4416 701.6 3714.4 10.90
17 37.90 43.78 42.70 276.00 50.00 4692 744.26 3947.74 7.30
40.00
18 38.40 43.96 46.90 276.00 50.00 4968 791.28 4176.72 3.10
19 39.10 44.36 51.70 276.00 50.00 5244 842.84 4401.16 -1.70
20 40.00 45.00 57.10 276.00 50.00 5520 900 4620 -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