Q4

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

9 41.10 52.21 30.70 109.00 50.00 981 469.89 511.11 19.30 Cost Curves
10 40.00 50.00 30.10 109.00 50.00 1090 500 590 19.90 60.00
11 39.10 48.19 30.10 109.00 50.00 1199 530.09 668.91 19.90
12 38.40 46.73 30.70 109.00 50.00 1308 560.76 747.24 19.30
13 37.90 45.59 31.90 109.00 50.00 1417 592.67 824.33 18.10
14 37.60 44.74 33.70 109.00 50.00 1526 626.36 899.64 16.30 50.00
15 37.50 44.17 36.10 109.00 50.00 1635 662.55 972.45 13.90
16 37.60 43.85 39.10 109.00 50.00 1744 701.6 1042.4 10.90
17 37.90 43.78 42.70 109.00 50.00 1853 744.26 1108.74 7.30
40.00
18 38.40 43.96 46.90 109.00 50.00 1962 791.28 1170.72 3.10
19 39.10 44.36 51.70 109.00 50.00 2071 842.84 1228.16 -1.70
20 40.00 45.00 57.10 109.00 50.00 2180 900 1280 -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