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• e lliC followi ng demand scliecltile to clctermine total and marginal revenues
for” each ;tossible level of .sales.
t'*) ’illtiit can you conclude about tlJe structure of the industry in which this
fii‘i›1 is o}aeiating? Explain.
( *I tit i’ajtla tlte demand, total revenue ancl marginal fevenue curves for thi.s
$1 UI
t°) ^Y1iy do the 'demanfi’ and marginal revenue curves coincide?
I* I 'it'lacginal i‘eventie is the fate of change in total revenue.’ Do you agree?
1* i in verbally altd graphically , using the data in the table.
Product price (g),
Total
2 ‘The su;aply and demand for agrictlltwal pioducts are such tltat small ‹°ltanges
iia .iSi‘icUltural supply will result in drastic changes in prices. Howeve r, large
clJ‹l1figes in farm prices have moclest effects on agriculNral output.’ Carefully
evaluate this statement and use appropriate graphs to highlight the main
[itaiilts taf your argument.
.4 Asst<se- llie unit cost data shown in the t;ilale at the top o£ the ñext page are
‹)l‘ iI ]aurely competitive pfodticer.
t:iJ At ii product price of $32, will this firm produce in tlte short riln? Why, of
why not? If it does produce, wli.it will be the firm's lar Ofit-naaxintising or
1‹isii-lviniinising output? Explain. S}tecify the amount of economic pro£it or
lo.«i ]aer tinlt of output.
(li) Alaswei Ilie questions in (a) asstllitllig that product price is $41.
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