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    Cs 24

    Uploaded by

    Ammar Akhter Uz Zaman
    - The firm produces 14 units and earns total profits of 108.72 - At a quantity of 14 units, the firm enjoys positive or economic profits - Therefore, the firm will choose to continue operating to maximize profits

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    © All Rights Reserved
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    Cs 24

    Uploaded by

    Ammar Akhter Uz Zaman
    9 views1 page
    - The firm produces 14 units and earns total profits of 108.72 - At a quantity of 14 units, the firm enjoys positive or economic profits - Therefore, the firm will choose to continue operating to maximize profits

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    cs24

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    - The firm produces 14 units and earns total profits of 108.72 - At a quantity of 14 units, the firm enjoys positive or economic profits - Therefore, the firm will choose to continue operating to maximize profits

    Copyright:

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

    Cs 24

    Uploaded by

    Ammar Akhter Uz Zaman
    - The firm produces 14 units and earns total profits of 108.72 - At a quantity of 14 units, the firm enjoys positive or economic profits - Therefore, the firm will choose to continue operating to maximize profits

    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 30.70 284.00 50.00 2556 469.89 2086.11 19.30 Cost Curves
    10 40.00 50.00 30.10 284.00 50.00 2840 500 2340 19.90 60.00
    11 39.10 48.19 30.10 284.00 50.00 3124 530.09 2593.91 19.90
    12 38.40 46.73 30.70 284.00 50.00 3408 560.76 2847.24 19.30
    13 37.90 45.59 31.90 284.00 50.00 3692 592.67 3099.33 18.10
    14 37.60 44.74 33.70 284.00 50.00 3976 626.36 3349.64 16.30 50.00
    15 37.50 44.17 36.10 284.00 50.00 4260 662.55 3597.45 13.90
    16 37.60 43.85 39.10 284.00 50.00 4544 701.6 3842.4 10.90
    17 37.90 43.78 42.70 284.00 50.00 4828 744.26 4083.74 7.30
    40.00
    18 38.40 43.96 46.90 284.00 50.00 5112 791.28 4320.72 3.10
    19 39.10 44.36 51.70 284.00 50.00 5396 842.84 4553.16 -1.70
    20 40.00 45.00 57.10 284.00 50.00 5680 900 4780 -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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