Q4

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

9 41.10 52.21 30.70 282.00 50.00 2538 469.89 2068.11 19.30 Cost Curves
10 40.00 50.00 30.10 282.00 50.00 2820 500 2320 19.90 60.00
11 39.10 48.19 30.10 282.00 50.00 3102 530.09 2571.91 19.90
12 38.40 46.73 30.70 282.00 50.00 3384 560.76 2823.24 19.30
13 37.90 45.59 31.90 282.00 50.00 3666 592.67 3073.33 18.10
14 37.60 44.74 33.70 282.00 50.00 3948 626.36 3321.64 16.30 50.00
15 37.50 44.17 36.10 282.00 50.00 4230 662.55 3567.45 13.90
16 37.60 43.85 39.10 282.00 50.00 4512 701.6 3810.4 10.90
17 37.90 43.78 42.70 282.00 50.00 4794 744.26 4049.74 7.30
40.00
18 38.40 43.96 46.90 282.00 50.00 5076 791.28 4284.72 3.10
19 39.10 44.36 51.70 282.00 50.00 5358 842.84 4515.16 -1.70
20 40.00 45.00 57.10 282.00 50.00 5640 900 4740 -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