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In a perfectly competitive market for widgets, the market price is R15. Use the cost information for a firm producing widgets in this market given in the table below and answer the question that follows. 1.17 Table 1,3 Quantity Total Fied Cost Total Variable Cost 10 35 10 70 10 105 10 140 10 175 This firm should. a) break even. b) shut down. c) expand production. d) minimise losses by producing 1 widget. A small farmer is more likely to operate in a perfectly competitive market than a company like AB inBev because. 1.18 a) a small business is more likely to keep close control on costs than a large firm. b) AB inBev employs many people, whereas perfectly competitive firms are owner-managed. c) the demand for beer is less elastic than the demand for food. d) a small farmer supplies a small share of market supply. 1.19 What is the firm's profit maximising level of output in Figure 1.3? Figure 1.3 Quantity a) Q1 b) Q2 c) Q3 d) Q4

In a perfectly competitive market for widgets, the market price is R15. Use the cost information for a firm producing widgets in this market given in the table below and answer the question that follows. 1.17 Table 1,3 Quantity Total Fied Cost Total Variable Cost 10 35 10 70 10 105 10 140 10 175 This firm should. a) break even. b) shut down. c) expand production. d) minimise losses by producing 1 widget. A small farmer is more likely to operate in a perfectly competitive market than a company like AB inBev because. 1.18 a) a small business is more likely to keep close control on costs than a large firm. b) AB inBev employs many people, whereas perfectly competitive firms are owner-managed. c) the demand for beer is less elastic than the demand for food. d) a small farmer supplies a small share of market supply. 1.19 What is the firm's profit maximising level of output in Figure 1.3? Figure 1.3 Quantity a) Q1 b) Q2 c) Q3 d) Q4

Economics (MindTap Course List)
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter22: Perfect Competition
Section: Chapter Questions
Problem 6WNG
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In a perfectly competitive market for widgets, the market price is R15. Use the cost information for a firm producing widgets in this market given in the table below and answer the question that follows. 1.17 Table 1.3 Quantity Total Fixed Cost Total Variable Cost 10 35 10 70 10 105 10 140 10 175 This firm should.. a) break even. b) shut down. c) expand production. d) minimise losses by producing 1 widget. A small farmer is more likely to operate in a perfectly competitive market than a company like AB inBev because. 1.18 a) a small business is more likely to keep close control on costs than a large firm. b) AB inBev employs many people, whereas perfectly competitive firms are owner-managed. c) the demand for beer is less elastic than the demand for food. d) a small farmer supplies a small share of market supply. 1.19 What is the firm's profit maximising level of output in Figure 1.3? Figure 1.3 Quantity a) Q1 b) Q2 c) Q3 d) Q4
Transcribed Image Text:In a perfectly competitive market for widgets, the market price is R15. Use the cost information for a firm producing widgets in this market given in the table below and answer the question that follows. 1.17 Table 1.3 Quantity Total Fixed Cost Total Variable Cost 10 35 10 70 10 105 10 140 10 175 This firm should.. a) break even. b) shut down. c) expand production. d) minimise losses by producing 1 widget. A small farmer is more likely to operate in a perfectly competitive market than a company like AB inBev because. 1.18 a) a small business is more likely to keep close control on costs than a large firm. b) AB inBev employs many people, whereas perfectly competitive firms are owner-managed. c) the demand for beer is less elastic than the demand for food. d) a small farmer supplies a small share of market supply. 1.19 What is the firm's profit maximising level of output in Figure 1.3? Figure 1.3 Quantity a) Q1 b) Q2 c) Q3 d) Q4
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