1. The output and cost of rice (in bags) are presented in the table below....

1. The output and cost of rice (in bags) are presented in the table below. Use the following information in the table to answer the questions that follow
Output of rice (in bags)
0
1
2
3
4
Total Variable Cost (TVC) $
0
5
7
10
20
Total Cost (TC) $
7
12
14
17
27
(a) Calculate the
i. Average Fixed Cost at Output levels 0, 2, and 4.
ii. Marginal cost (MC) at all levels of output
(b) If the price of a bag of rice were $10,
i. Calculate the profit/loss at all levels of output,
ii. At what output level(s) is the maximum profits made?
(c) Draw the marginal cost curve

2. (a) Define (i) Monopoly (ii) monopolistic competition (iii) duopoly (iv) oligopoly (v) monopsony
(b) With the aids of graphical illustration, show the short-run equilibrium conditions of a perfectly competitive firm when it makes (i) Abnormal profit and (ii) Normal profit?

1 Answers Available
Asked by Aiyela korede on 2nd May, 2020