4. Shutdown price. Consider a firm that washes cars and has a cost function C(q) = 2q² +7q+10, where q denotes the number of cars washed. Intuitively, the first two terms capture the firm's vari- able cost, because they depend on the output the firm produces, whereas the last term represents its fixed cost, because it is not a function of output q. (a) Find the firm's marginal cost curve, its average cost curve, its average variable cost curve, and its average fixed cost curve. (b) Assume that the firm operates in a perfectly competitive industry, taking a príce of p= $18 as given. Which output level does the firm choose in this scenario? (c) What if the price of output decreases to p= $11? (d) For which price will the firm choose to shut down its operations?

Could you specifically explain question (b), such as the process in detail and how you got the correct solution

How did you get the productivity of the new unit. What formula is used?

Describe the various efficiencies that can be applied when we select an analysis period?

Bags/Participants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700   Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order?  At what quantity of bags will profits be maximized? A   Use the profit maximizing rule, MR ≥ MC, buy 300 bags. B   Use the profit maximizing rule, MR ≥ MC, buy 200 bags. C   Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. D   Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.

FC VC TC MC AFC AVC ATC 1 12 2 100 4 46 30 11 6.