Economics Homework Help

Every year at the Brisbane Exhibition (the ‘Ekka’), hundreds of vendors sell Showbags

containing an assortment of goods. Assume the market for Ekka Showbags is perfectly competitive. Kelly is a producer in the Showbag market, selling her Showbags at the market price of $5.00. At the profit-maximising output level of 46 Showbags, Kelly’s average total cost is $4.20 per Showbag. The minimum average variable cost is $3.70 per Showbag.Answer the following questions:Kelly’s economic profit or loss is  (use a negative value if a loss). Answer in dollars, rounded to two decimal places (ie: to the nearest cent).State whether the following statement is true or false: “At the profit-maximising quantity, Kelly is making an economic profit of $1.30 per Showbag.” Type T for true, or F for false .State whether the following statement is true or false: “Kelly should shut down if the market price is $3.69 per Showbag.” Type T for true, or F for false .