Tony sells pet collars at the Sunday markets. Assume the market for pet collars is perfectly competitive. Tony's profit maximising output is 40 collars. At this profit-maximising output level, Tony's average total cost is $8.20 per collar. His minimum average variable cost is $8.10 per collar. The market price is $8.15 per collar.
Answer the following questions:
Tony's economic profit or loss is (use a negative value if a loss). Answer in dollars.
State whether the following statement is true or false: "Tony's marginal revenue is $8.20 per collar." Type T for true, or F for false .
At the current market price, should Tony shut down? Type Y for Yes, or N for No .