Q. 3 Prevailing market price is 4 USD. Firm's total cost and output is given in the following:

Output = 0, 10, 20, 30, 40, 50, 60, 65, 70, 75, 80, 85, 90

Total cost = 65, 100, 130, 150, 160, 170, 185, 196, 210, 227, 250, 290, 360

A. Find out the level of output at which the firm maximizes profits (total)?

B. Find out the total profit at profit maximizing level output?

C. Determine the quantities that the consumer should produce in order to maximize the profit using total and marginal analysis. Also determine at what levels of output does the firm break even?

D. Find out the level of output at which the firm maximizes average profits?

E. Find out the average profit at average profit maximizing level output?

Q4.

A. If demand for consumer goods is inelastic and supply is unit elastic / unitary elastic, a shift in which curve would affect price more or quantity more? Justify your answers with diagram.

B. If supply of product 'X' is elastic and demand for product 'X' is inelastic, a shift in which curve would affect price more or quantity more? Justify your answers with diagram.