Q4

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

9 41.10 52.21 30.70 288.00 50.00 2592 469.89 2122.11 19.30 Cost Curves
10 40.00 50.00 30.10 288.00 50.00 2880 500 2380 19.90 60.00
11 39.10 48.19 30.10 288.00 50.00 3168 530.09 2637.91 19.90
12 38.40 46.73 30.70 288.00 50.00 3456 560.76 2895.24 19.30
13 37.90 45.59 31.90 288.00 50.00 3744 592.67 3151.33 18.10
14 37.60 44.74 33.70 288.00 50.00 4032 626.36 3405.64 16.30 50.00
15 37.50 44.17 36.10 288.00 50.00 4320 662.55 3657.45 13.90
16 37.60 43.85 39.10 288.00 50.00 4608 701.6 3906.4 10.90
17 37.90 43.78 42.70 288.00 50.00 4896 744.26 4151.74 7.30
40.00
18 38.40 43.96 46.90 288.00 50.00 5184 791.28 4392.72 3.10
19 39.10 44.36 51.70 288.00 50.00 5472 842.84 4629.16 -1.70
20 40.00 45.00 57.10 288.00 50.00 5760 900 4860 -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