Assume the following cost data for a firm in perfect competition. Apply MC=MR rule to answer: A) will this firm produce in the short period if the product price is $80? What will be the total profits or loss of the firm? B) will this firm produce in the short period if the product price is $55? What will be the total profits or loss of the firm?C) what will be the profit/loss of the firm if the product price is $34? Will it be beneficial to shut down the production? Why?

Q5 Assume the following cost data are for a firm in perfect competition. Apply MC =MR rule to answer the questions given below. 15 marks Output (units) AFC ($) AVC ($) AC ($) MC ($) 0 1 90 60 150 150 2 45 48 93 36 3 30 42 min 72 30 4 22.5 45 57.5 54 5 18 49.2 67.2 66 6 15 54.99 69.99 83.94 7 12.84 63.42 76.26 113.88 8 11.25 74.25 85.5 150.18 a) Will this firm produce in the short period if the product price is $80? What will be the total profits or loss of the firm? TR = TC = Profit or loss = Decision: b) Will this firm produce in the short period if the product price is $55? What will be the total profits or loss of the firm? TR = TC = Profit or Loss = Decision: C) What will be the profit/loss of the firm if the product price is $34? Will it be beneficial to shut down the production? Why