Question No 02. Suppose Malik is one of the many sellers of the milk in Karachi who owns his business with the title Malik Milk Firm. The customers of milk have perfect knowledge about the milk and are indifferent between the milk sold by Malik, Shabbir and other producers. If following is the total cost of producing milk. Answer the given questions. Total output Total Cost 20 1 30 2 42 3 55 4 69 5 84 100 7 117 i) How much milk will Malik as an individual firm would supply in the market at the price of Rs. 14 per liter? ii) How will the supply of milk be effected if the price rises to Rs. 16 per liter?

Question No 02. Suppose Malik is one of the many sellers of the milk in Karachi who owns his business with the title Malik Milk Firm. The customers of milk have perfect knowledge about the milk and are indifferent between the milk sold by Malik, Shabbir and other producers. If following is the total cost of producing milk. Answer the given questions. Total output Total Cost 20 1 30 2 42 3 55 4 69 5 84 100 7 117 i) How much milk will Malik as an individual firm would supply in the market at the price of Rs. 14 per liter? ii) How will the supply of milk be effected if the price rises to Rs. 16 per liter?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 5MC

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