13. The above diagram shows the cost curves for a perfectly competitive wheat farmer. a. At what price does the wheat farmer shut down? b. State clearly the shut down conditions. c. State under what conditions will new firms enter a perfectly competitive market? (4 marks) d. When does entry stop? Quantity of labor Total product (workers) (widgets per day) TFC TVC TC AFC AVC ATC MC 0 0 . . x XX X 1 > 2 15 o 3 35 4 50 5 60 L 6 65 (3 marks) (4 marks) (2 marks) 5. The above schedule shows the demand and supply for pre-owned Honda motor cars in the Jamaican market over a year. 85 per cent of pre-owned Honda motor cars are purchased from the Japanese. Use these information to answer each of the following question: a. b. Show the market equilibrium graphically and state the equilibrium price and quantity. (3 marks) There is no change in the demand or supply; however prices increase to US10,000. Explain how market equilibrium is restored. (2 marks) In the market for pre-owned Honda motor cars, show the impact on equilibrium price and quantity for each of the following separately i. A tsunami in Japan has destroyed 60 percent of the use cars and supply reduces by 200 at each price. (4 marks) it. People have learnt that Honda cars are the most fuel efficient vehicles and require 100 more cars at each price. (4 marks)