Question Two - 55 marks

Quantity	Price	TR	TC	Profit	AR	MR	MC	FC	VC	AFC	ATC	AVC
0	24		10					10
1			24
2			44
3			66
4			90
5			120
6			156

Given the above table answer all the questions that follows -

1. Fill in the blank spaces and show all workings (25 marks)
2. Construct two graphs.Label one graph A and the other B.
   1. On graph A plot the total cost, variable cost, total revenue and fixed cost curves. (5 marks)
   2. On graph B, plot the marginal cost, marginal revenue, average revenue, average variable cost, average fixed and average total cost curves. (10 marks)
3. Analyse whether the firm should continue operation or shut down in the short run. Give reason/s for your response. (5 marks)
4. Identify and shade the profits or losses area including the price. (5 marks)
5. Identify the firm maximum profits equilibrium quantity. Give reason/s for your response. (5 marks)