Petunia's farm produces and sells milk. The market for milk is perfectly competitive. The price of milk is $2.50 per gallon. The relationship between the farm's output and total costs is shown in the table below.

Quantity(gallons per day) Total cost(dollars per day)

0 400

100 703

200 880

300 1008

400 1160

500 1410

600 1840

A) Draw Petunia's average variable, average total and marginal cost curves

B) Using the graphs, find Petunia's profit maximizing output.

C) If Petunia maximizes her profit, how much profit does she make?

D) What is Petunia's shut down point? What is her economic profit at her shutdown point?

E) Should Petunia shut down? Will farms with costs the same as Petunia's enter or exit the milk market?