Scribd
Upload
4 views

Micro Question 3

Micro Question 3

Uploaded by

Suria Nikki
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
4 views

Micro Question 3

Micro Question 3

Uploaded by

Suria Nikki
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Question 3

(a) The table below the production cost of ABC company.

Output (Units) Total Cost (RM)


0 10
1 20
2 30
3 40
4 50
5 60

i) Calculate average cost, average variable cost and marginal cost.

Marginal Cost Average Cost Average Variable Cost


- - -
10 20 10
8 14 9
3 10.3 7
9 10 7.5
20 12 10

ii) How much fixed cost faced by the firm?

RM 10

(b) The following diagram shows the situation that might be faced by firms in

Perfect Competition Market in the short run.


i) Calculate:

a. Total Revenue (TR)

10 x 10 = 100

b. Total Variable Cost (TVC)

10 x 5 = 50

c. Total Cost (TC)

10 x 8 = 80

d. Profit/ Loss at the equilibrium point.

100 – 80 = 20 (Profit)

ii) Explain THREE (3) characteristics of Perfect Competition Market.

 Large Number Of Buyers and Sellers


 Homogenous
 Free Entry And Exit
 Normal Profit

You might also like