Please note, hand written solution is prohibited. QUESTION 20Study the table below which represents the cost and price schedules facing a perfectly competitive firm thatmanufactures bulbs. Use this information to answer the question.Quantity ofthe product01234SPrice perunit(R)101010이비101010Totalrevenue(R)01020304050Totalprofit(R)-10-9-5-3-3-6Marginalcost(R)-9681013Averagevariable cost(R)-9,007,507,678,259,20This perfectly competitive firm will producea) 3 bulbs, since losses are minimised.b) 4 bulbs, but it will consider shutting down in the short run.4 bulbs, since at this production level it earns normal profit.4 bulbs and will stay in operation.

Business economics is the study of how organizations make decisions and allocate resources in the…

Study the table below which represents the cost and price schedules facing a perfectly competitive firm that manufactures bulbs. Use this information to answer the question. Quantity of the product 0 1 2 3 4 5 Price per unit (R) 10 10 10 10 10 10 Total revenue 88 Total profit ܟ ܗ ܗ ܟ ܗ ܐ ܫ (R) -10 -9 -6 Marginal cost (R) - 9 6 8 10 13 Average variable cost (R) 9,00 7,50 7,67 8,25 9,20 This perfectly competitive firm will produce a) 3 bulbs, since losses are minimised. b) 4 bulbs, but it will consider shutting down in the short run. 4 bulbs, since at this production level it earns normal profit. 4 bulbs and will stay in operation. d)

Study the table below which represents the cost and price schedules facing a perfectly competitive firm that manufactures bulbs. Use this information to answer the question. Quantity of the product 0 1 2 3 4 5 Price per unit (R) 10 10 10 10 10 10 Total revenue 88 Total profit ܟ ܗ ܗ ܟ ܗ ܐ ܫ (R) -10 -9 -6 Marginal cost (R) - 9 6 8 10 13 Average variable cost (R) 9,00 7,50 7,67 8,25 9,20 This perfectly competitive firm will produce a) 3 bulbs, since losses are minimised. b) 4 bulbs, but it will consider shutting down in the short run. 4 bulbs, since at this production level it earns normal profit. 4 bulbs and will stay in operation. d)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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