Would it be better for npng to keep producing

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No Pain No Gain (NPNG), Inc., is a dental practice advocating a "natural" approach to dentistry. Namely NPNG specializes in providing root canal operations without the administration of pain-killing drugs such as Novocain. Output (Q) is measured as the number of root canals performed on a daily basis. Consider the following spotty information on NPNG short run cost curves.

Q  TFC    TVC   TC      MC     AFC   AVC   ATC

1   $100   $50     

2                                       $30

3                                                               $40

4                           $270                           

5                                                                           $70

a. Complete the following table.

b. If NPNG operates in a competitive market, how many root canals will they perform per day if the price of a root canal is $50.00? Are they earning a profit or loss? Illustrate graphically and explain.

c. Would it be better for NPNG to keep producing or should they shut down? Why? Illustrate.

Reference no: EM132414963

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