Calculate the total cost at the profit maximizing quantity. 

Calculate the total revenue at the profit maximizing quantity

Calculate the profit for this firm and shade the profit region in the graph

Calculate  the firm is deciding whether to shut down or not at the current price of $11. Help it decide whether it should shut down or not. Need to describe what determines the shut down decision?

 

The graph below represents the situation of Marguerite's Caps in the short-run, a firm selling caps in the perfectly competitive cap industry. Suppose the price in the market is at $11 Price and cost (dollars per cap) 15.00- 14.00- 13.00- 12.00- 11.00- MR 10.00- 9.00- 8.00- 7.00- 6.00- 5.00- 4.00- 3.00- 2.00- 1.00- 0.00- 0 -20 20 40 60 80 Quanity (caps per day) MC ATC AVC 100 120 140