1.The following cost data is for a firm which is selling in a perfectly competitive market:

Total product

Average

fixed

cost

Average variable

cost

Average total

cost

Marginal cost

1

$100.00

$17.00

$117.00

$17

2

50.00

16.00

66.00

15

3

33.33

15.00

47.33

13

4

25.00

14.25

39.25

12

5

20.00

14.00

34.00

13

6

16.67

14.00

30.67

14

7

14.29

15.71

30.00

26

8

12.50

17.50

30.00

30

9

11.11

19.44

30.55

35

10

10.00

21.60

31.60

41

11

9.09

24.00

33.09

48

12

7.33

26.67

35.00

56

Using the formula, (P-A) x Q, profit/loss column at the right of the table for the following price points and answer if the firm will be in profit maximizing or loss minimizing or shut down scenario?

1.Price $28

2.Price $32

3.Price $36

make a graph for all three cases.