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q 3 and 4 plz i need answers asap , as i have to submit it within an hour Q) 3. Evaluate the following statements

q 3 and 4 plz i need answers asap , as i have to submit it within an hour

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Q) 3. Evaluate the following statements whether they are true or false. Justify your answer with an appropriate reason. (Draw a graph if it is necessary). [12 Marks] a) The long run equilibrium condition for the competitive firm is P = LRAC = MR = MC. b) If the total cost function is given by TC = 10,000 +10Q +85 Q', the associated total fixed cost and total variable functions are given by: TFC = 10,000 and TVC =10Q +85 Q' respectively. c) A monopolistically competitive firm cannot successfully maintain positive economic profits in the long-run d) Under kinked demand theory the prices of oligopolists are predicted to be rather rigid or 'sticky'. e) A firm not having the ability to influence the price of its goods and services and having to accept the equilibrium price in the market of that good is a price taker. f) For a monopoly producing a certain amount of output, price is less than marginal revenue. Q 4. Explain the conditions that are met when a consumer has found the best affordable combination of goods to buy. (Use the terms Budget line, Marginal Rate of Substitution and Relative Price in your Explanation) Also graphically illustrate the best affordable combination. [4 Marks]

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