Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SECTION A: APPLICATION QUESTION (409%) (b) If the firm is operating in a perfectly competitive market, what price would the firm require to: R2K is

image text in transcribed
SECTION A: APPLICATION QUESTION (409%) (b) If the firm is operating in a perfectly competitive market, what price would the firm require to: R2K is a small firm engage in the production of cucumbers. The table below shows the firm's stay in the market in the long run? Explain your answer. (5 marks) output, total revenue (TR) and input costs at each level of output. Answer: Output (unit) 0 1 2 3 4 6 Total revenue ($) 0 30 60 90 120 150 180 210 Land rent ($) 6 6 6 Machinery depreciation (S) 14 4 Labour ($) 15 25 30 35 45 60 80 Fertilizer ()) 18 36 48 Fuel ($) 10 12 14 18 24 32 (a) Calculate the total fixed cost (TFC), total variable cost (TVC), total cost (TC), av fixed cost (AFC), average variable cost (AVC), average total cost (ATC), average revenue (AR.), marginal cost (MC) and marginal revenue (MR.) at each level of quantity. stay in the market in the short rum? Explam your answer. (6 marks) (20 marks) Answer: Answer: Output (unit) 5 TFC (S) TVC ($) TC (S) AFC ($) (mii) shut down temporarily? Explain your answer. (5 marks) AVC (S) Answer: ATC ($) AR ($) MC ($) MR ($)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Wisdom Of Crowds

Authors: James Surowiecki

1st Edition

0385721706, 9780385721707

More Books

Students also viewed these Economics questions