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    Cs 3

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    Ammar Akhter Uz Zaman
    The document shows a table with data on quantity produced, average variable cost, average cost, marginal cost, price, marginal revenue, total revenue, total cost and total profit at different quantity levels. It then asks which scenario will the firm enjoy economic profits or must shutdown - (A) total profit is positive, (B) total profit is positive, or (C) total cost exceeds total revenue.

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    Cs 3

    Uploaded by

    Ammar Akhter Uz Zaman
    3 views1 page
    The document shows a table with data on quantity produced, average variable cost, average cost, marginal cost, price, marginal revenue, total revenue, total cost and total profit at different quantity levels. It then asks which scenario will the firm enjoy economic profits or must shutdown - (A) total profit is positive, (B) total profit is positive, or (C) total cost exceeds total revenue.

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    cs3

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    The document shows a table with data on quantity produced, average variable cost, average cost, marginal cost, price, marginal revenue, total revenue, total cost and total profit at different quantity levels. It then asks which scenario will the firm enjoy economic profits or must shutdown - (A) total profit is positive, (B) total profit is positive, or (C) total cost exceeds total revenue.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    3 views1 page

    Cs 3

    Uploaded by

    Ammar Akhter Uz Zaman
    The document shows a table with data on quantity produced, average variable cost, average cost, marginal cost, price, marginal revenue, total revenue, total cost and total profit at different quantity levels. It then asks which scenario will the firm enjoy economic profits or must shutdown - (A) total profit is positive, (B) total profit is positive, or (C) total cost exceeds total revenue.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Q4

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


    9 41.10 52.21 30.70 263.00 50.00 2367 469.89 1897.11 19.30 Cost Curves
    10 40.00 50.00 30.10 263.00 50.00 2630 500 2130 19.90 60.00
    11 39.10 48.19 30.10 263.00 50.00 2893 530.09 2362.91 19.90
    12 38.40 46.73 30.70 263.00 50.00 3156 560.76 2595.24 19.30
    13 37.90 45.59 31.90 263.00 50.00 3419 592.67 2826.33 18.10
    14 37.60 44.74 33.70 263.00 50.00 3682 626.36 3055.64 16.30 50.00
    15 37.50 44.17 36.10 263.00 50.00 3945 662.55 3282.45 13.90
    16 37.60 43.85 39.10 263.00 50.00 4208 701.6 3506.4 10.90
    17 37.90 43.78 42.70 263.00 50.00 4471 744.26 3726.74 7.30
    40.00
    18 38.40 43.96 46.90 263.00 50.00 4734 791.28 3942.72 3.10
    19 39.10 44.36 51.70 263.00 50.00 4997 842.84 4154.16 -1.70
    20 40.00 45.00 57.10 263.00 50.00 5260 900 4360 -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

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