Petunia mass produces and sells bacalaitos for the Puerto Rican community in New Jersey. The market for bacalaitos is perfectly competitive. The market price of bacalaitos is $2.50. The relationship between her output and total costs is shown in the table below.
a) Draw Petunias average variable, average total, and marginal cost curves.
b) Use your graphs to find Petunias profit-maximizing output.
c) If Petunia maximizes her profit, how much profit does she make?
d) What is Petunias shutdown point? What is her economic profit at the shut-down point?