-- A firm produces 50 000 boxes in one month and market price of these shoes is 10 TL per box.The total cost of the firm400 000 TL and 20% of that cost is variable cost. Given that information

a) Calculate the profit, ATC, AFC and AVC of that firm

b) Suppose that market price is up to 11. The firm considers to increase its output to 55 000 when the price is 11which however will lead to a total cost of 480 000.Should this firm increase its output and if so, why?

-- There are only four consumers in a market whose demand schedules are given as follows

PriceDemand of ADemand of BDemand of CDemand of D

20300420250360

25265390225330

30220340185305

a)Find the market demand using independence assumption

b) Find the market demandusingthe assumption of homogenous consumers and assuming that consumer C is the represantative consumer