Here’s a breakdown of the steps involved:

1. Filling in the Missing Values:

• Formulas for Missing Values:

  • Total Revenue (TR) = Price x Quantity
  • Total Cost (TC) = Fixed Cost (FC) + Variable Cost (VC)
  • Marginal Cost (MC) = Change in TC / Change in Quantity
  • Marginal Revenue (MR) = Change in TR / Change in Quantity
  • Average Fixed Cost (AFC) = FC / Quantity
  • Average Variable Cost (AVC) = VC / Quantity
  • Average Total Cost (ATC) = TC / Quantity

• Using Excel Formulas:

  • Enter the appropriate formulas in the designated cells of the Excel template.
  • Ensure formulas reference the correct cell values for calculations.

2. Graphing Cost Curves and MR Curve:

• Select Data: Highlight the columns for MC, MR, AFC, AVC, and ATC.
• Insert Chart: Choose a suitable chart type, such as a line graph.
• Customize Chart: Add labels, titles, and adjust formatting as needed.

3. Finding Profit-Maximizing Price and Output:

• Look for MC = MR: Identify the quantity where MC intersects with MR.
• Determine Price: The price corresponding to this quantity is the profit-maximizing price.

4. Calculating Profit (or Loss):

• Profit = TR – TC: Subtract total cost from total revenue at the profit-maximizing quantity.

5. Answering Questions in the Paper:

• Decision to Remain Open or Shut Down:

  • Analyze the relationship between price, average variable cost (AVC), and average total cost (ATC) at the price of $10.
  • If price is greater than or equal to AVC, the firm should remain open in the short run.
  • If price is less than AVC, the firm should temporarily shut down to minimize losses.

• Zero Economic Profit in the Long Run:

  • Explain the implications of free entry and exit in perfectly and monopolistically competitive markets.
  • Discuss how competition drives prices down to the level of average total cost, leading to zero economic profits in the long run.
  • Explain why firms still stay in business despite zero economic profits, considering factors such as:
    • Normal profit (opportunity cost of capital)
    • Non-economic goals (owner satisfaction, social impact)
    • Dynamic market conditions (potential for future profits)

Remember:

• Use clear and concise language in your paper.
• Support your arguments with evidence from the readings and your calculations.
• Cite sources appropriately.
• Proofread and edit your work carefully.