As an economic consultant, it's important to calculate Lightning Volt Automotive's profits and losses given their current production costs. You will need to make sound economic decisions by determining the optimal level of production and stating whether the firm should contract, remain at the current level of production, or expand production levels. Even though the firm has recently been formed, it would be helpful to strategize the firm's shutdown point if an external shock were to hit the economy.

Address the following in a Word document.

• Explain how profits and losses are calculated.
• Use the Excel spreadsheet linked here for the following:

Output, Total | Marginal Product of Labor, Average Product of Capital, Labor, Product of MPL = Change in q / Labor, Change in K L Labor q Change in L Product of PL = q/L 10 O 0 10 1 10 10 2 41 10 3 81 10 4 125 10 5 140 10 6 115 10 7 90Outpu TC TFC TVC AFC AVC ATC MC 1 200 2 350 3 600 4 800 5 1100 6 1450 7 1825 8 2250 9 2750 10 3350