Q4

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

9 41.10 52.21 30.70 300.00 50.00 2700 469.89 2230.11 19.30 Cost Curves
10 40.00 50.00 30.10 300.00 50.00 3000 500 2500 19.90 60.00
11 39.10 48.19 30.10 300.00 50.00 3300 530.09 2769.91 19.90
12 38.40 46.73 30.70 300.00 50.00 3600 560.76 3039.24 19.30
13 37.90 45.59 31.90 300.00 50.00 3900 592.67 3307.33 18.10
14 37.60 44.74 33.70 300.00 50.00 4200 626.36 3573.64 16.30 50.00
15 37.50 44.17 36.10 300.00 50.00 4500 662.55 3837.45 13.90
16 37.60 43.85 39.10 300.00 50.00 4800 701.6 4098.4 10.90
17 37.90 43.78 42.70 300.00 50.00 5100 744.26 4355.74 7.30
40.00
18 38.40 43.96 46.90 300.00 50.00 5400 791.28 4608.72 3.10
19 39.10 44.36 51.70 300.00 50.00 5700 842.84 4857.16 -1.70
20 40.00 45.00 57.10 300.00 50.00 6000 900 5100 -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