Q4

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

9 41.10 52.21 30.70 280.00 50.00 2520 469.89 2050.11 19.30 Cost Curves
10 40.00 50.00 30.10 280.00 50.00 2800 500 2300 19.90 60.00
11 39.10 48.19 30.10 280.00 50.00 3080 530.09 2549.91 19.90
12 38.40 46.73 30.70 280.00 50.00 3360 560.76 2799.24 19.30
13 37.90 45.59 31.90 280.00 50.00 3640 592.67 3047.33 18.10
14 37.60 44.74 33.70 280.00 50.00 3920 626.36 3293.64 16.30 50.00
15 37.50 44.17 36.10 280.00 50.00 4200 662.55 3537.45 13.90
16 37.60 43.85 39.10 280.00 50.00 4480 701.6 3778.4 10.90
17 37.90 43.78 42.70 280.00 50.00 4760 744.26 4015.74 7.30
40.00
18 38.40 43.96 46.90 280.00 50.00 5040 791.28 4248.72 3.10
19 39.10 44.36 51.70 280.00 50.00 5320 842.84 4477.16 -1.70
20 40.00 45.00 57.10 280.00 50.00 5600 900 4700 -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