Total Total Average
Fixed Variable Total Total Marginal
Quantity Cost Cost Cost Cost Cost
0 $40 0 40 X X
1 40 55 95 95 55
2 40 75 115 57.50 20
3 40 90 130 43.33 15
4 40 110 150 37.50 20
5 40 135 175 35 25
6 40 170 210 35 35
7 40 220 260 37.14 50
8 40 290 330 41.25 70
a) At a product price of $72, how many units will this firm produce in the short-run? EXPLAIN. What will be its profits or losses?

b) At a product price of $52, how many units will this firm produce in the short-run? EXPLAIN. What will be its profits or losses?

c) At a product price of $28, how many units will this firm produce in the short-run? EXPLAIN. What will be its profits or losses?