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Question #3: DVD Movie Central, a firm in a perfectly competitive market, produces DVD movies for sale, which requires a building and a machine that copies the original movie onto a DVD

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Question #3: DVD Movie Central, a firm in a perfectly competitive market, produces DVD movies for sale, which requires a building and a machine that copies the original movie onto a DVD. The company rents a building for $30,000 per month. It also rents a DVD copy machine for $20,000 a month. Both of these costs do not change with the DVD production. However, the company also incurs costs for using electricity or for hiring more workers as DVD production increases. The company's total variable cost per month is given in the accompanying table: Quantity of DVDS VC 0 0 1,000 5,000 2,000 8,000 3,000 9,000 4,000 14,000 5,000 20,000 6,000 33,000 7,000 49,000 8,000 72,000 9,000 99,000 10,000 150,000 # Calculate DVD Movie Central's average total cost, average variable cost, and marginal cost for each quantity of output. b. Suppose that currently the market price of a DVD is $25. Identify the profit maximizing or loss minimizing quantity for DVD Movie Central Calculate the total loss or profit for DVD Movie Central. Is this a long- run equilibrium? Why? Why not? What happens to the price of DVD movies in the long run? Explain e Suppose that currently the market price of a DVD is $13. Identify the profit maximizing or loss minimizing quantity for DVD Movie Central. Calculate the total loss or profit for DVD Movie Central. Is this a long- nun equilibrium? Why? Why not? What happens to the price of DVD movies in the long run? Explain. d Suppose that currently the market price of a DVD is $10. Identify the profit maximizing or loss minimizing quantity for DVD Movie Central Calculate the total loss or profit for DVD Movie Central. Is this a long- run equilibrium? Why? Why not? What happens to the price of DVD movies in the long run? Explain What is DVD Movie Central's break-even price? What is its shut-down price? Draw DVD Movic Central's following cost and revenue curves: marginal cost, average total cost, average variable cost, marginal revenue and average revenue. In the graph, identity DVD Movie Central's individual supply curve