A computer company produces affordable, easy-touse home computer systems and has fixed costs of $\$ 250 .$ The marginal cost of producing computers is $\$ 700$ for the first computer, $\$ 250$ for the second, $\$ 300$ for the third, $\$ 350$ for the fourth, $\$ 400$ for the fifth, $\$ 450$ for the sixth, and $\$ 500$ for the seventh.

a. Create a table that shows the company's output, total cost, marginal cost, average cost, variable cost, and average variable cost.

b. At what price is the zero-profit point? At what price is the shutdown point?

c. If the company sells the computers for $\$ 500,$ is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC curves to illustrate your answer and show the

profit or loss.

d. If the firm sells the computers for $\$ 300,$ is it making a profit or a loss? How big is the profit or loss? Sketch a graph with $\mathrm{AC}, \mathrm{MC}$ , and AVC curves to illustrate your answer and show the profit or loss.