The table below shows the cost structure of a hypothetical firm, ClementAddae Enterprise

Economics Nov 07, 2020

The table below shows the cost structure of a hypothetical firm, ClementAddae Enterprise. Quantity Total Cost Fixed (GHC) Cost (GHC) Variable Cost (GHC) Average Variable Cost (GH) Average Total Cost (GHC) Marginal Cost (GHC) 0 100 1 130 2 150 3 160 4 172 5 185 6 210 7 240 00 280 9 330 10 390 11 462 12 538 iii. Copy and complete the Table. (5 marks) iv. At what level of output does diminishing returns set in, explain your answer thoroughly. (2 marks) v. Suppose that the price of the firm's product is GH¢30.00, how much will the firm produce to maximize profit? How much is total profit? (3 marks) vi. Suppose that the price of the firm's product is now GH¢50.00, how much will the firm produce to maximize profit? How much is total profit? (2 marks) vii. Produce a graph of Total cost, Total fixed cost and Total variable cost (on one graph sheet/excel). (2 marks) viii. Produce a graph of the Average total cost, Average fixed cost, average variable cost, marginal cost (on one graph sheet/excel). (4 marks) ix. Explain the relationship among the total and per unit cost curves. (2 Marks)

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