Suppose that you open a new coffee shop around Anam station. The coffee market is perfectly competitive, which means that there are many other coffee shops selling identical products ( there is only one menu "coffee" ). You, a price taker, take the market price (3,500 won per cup of coffee) as given. The following table shows how the quantity of coffee made per hour depends on your coffee shop's costs. Fixed costs and variable costs are given in the table.

1. What is the name of your coffee shop?

1.2 Fill in the table. ( In principle, MR and MC should appear halfway between any two rows. However, in this table, please put MR and MC in the row where Q=2.)

1. Draw the cost curves ( MC, ATC, AVC) and MR for your coffee shop.
2. What is the efficient scale of your coffee shop?
3. How many cups of coffee (per hour) do you produce to maximize profit (to minimize loss)?
4. What is your coffee shop's profit (per hour) at that level of production (Q4)?

6-7. Suppose that the price falls by 10% due to a decrease in demand arising from COVID-19.

1. If the price falls by 10% how many cups of coffee (per hour) would you produce to maximize profit ( to minimize loss) ?
2. If the price falls by 10% what would be your coffee shop's profit (per hour) at that level of production (Q6)?