Explanation

(a) (i) Themarginal revenue formula is calculated by dividing the change in totalrevenue by the change in quantity sold. In the case of the question asked, the output (kg) represents the quantity sold.

At output level 15, \(MR = \frac{30 - 0}{15 - 0} = \frac{30}{15} = $2.00\)

At output level 35, \(MR = \frac{70 - 30}{35 - 15} = \frac{40}{20} = $2.00\)

At output level 60, \(MR = \frac{120 - 70}{60 - 35} = \frac{50}{25} = $2.00\)

At output level 85, \(MR = \frac{170 - 120}{85 - 65} = \frac{50}{25} = $2.00\)

(ii) TheMarginal Cost Formulais calculated by dividing the change in Total Cost by the change in quantity sold (or output as regards this question).

At output level 15, \(MC = \frac{45 - 15}{15 - 0} = \frac{30}{15} = $2.00\)

At output level 35, \(MC = \frac{70 - 45}{35 - 15} = \frac{25}{20} = $1.25\)

At output level 60, \(MC = \frac{90 - 70}{60 - 35} = \frac{20}{25} = $0.80\)

At output level 85, \(MC = \frac{105 - 90}{85 - 65} = \frac{15}{25} = $0.60\)

(b)(i) The firm's break-even point is at output level 35.

(ii) The firm makes the highest profit at output level 85.

(iii) The firm attains equilibrium at output level 15.

(c) The firm is operating in perfectly competitive market.

Correct Answer: B. a surplus.

Explanation

If the price of a good is above equilibrium, this means that the quantity of the good supplied exceeds the quantity of the good demanded. There is a surplus of the goods on the market.

Correct Answer: B. K

Correct Answer: B. 40.0%

Correct Answer: A) Dynamic and convergence equilibrium

Explanation

The question is asking about equilibrium between supply and demand. Equilibrium is a state where the quantity of goods supplied matches the quantity of goods demanded. Disequilibrium occurs when this balance is upset, i.e. when demand or supply is greater than the other. The question is asking about what happens when disequilibrium occurs and the market moves towards a new equilibrium point.

The options are: Dynamic and convergence equilibrium, Static and Convergence equilibrium, Static and Divergence equilibrium, and Dynamic and Divergence equilibrium. The correct answer is Option A: Dynamic and convergence equilibrium. This means that the market is in a state of flux and is moving towards a new equilibrium point over time.

Dynamic equilibrium is a state where the market is constantly changing and adjusting to new conditions. Convergence equilibrium refers to the market moving towards a new equilibrium point. This may happen when there is a change in supply or demand or when there is an external shock to the market. The market will adjust over time until a new equilibrium point is reached.

Static equilibrium, on the other hand, is a state where the market is stable and there is no change in supply or demand. Divergence equilibrium occurs when the market moves away from an equilibrium point, and the market is not moving towards a new equilibrium point.

In summary, the correct answer is Option A: Dynamic and convergence equilibrium, which means that the market is adjusting towards a new equilibrium point over time.

Correct Answer: D. Average Variable Cost (AVC)

Correct Answer: D. a decrease in the wage rate and an increase in employment

Correct Answer: B. surplus

Explanation

A surplus budget is a budget whose revenues exceed the estimated expenditure in a particular financial year.

Correct Answer: B. Stock exchange

Correct Answer: B. the concentration of the firm of an industry in a particular area