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The table below shows the cost schedule of a firm.

Use the information provided as answer the questions that follow.

TFC

MC

520

510

520

$20

3

$20

$30

4

$20

$40

(4) Calcualte the total variable cost (TVC) and total cost (TC) for all levels of output. [8 marks]

(4) Calculate total revenue (TR) of each level of output if price is $30.

[4 marks]

(c) At what output will the firm choose to maximize profit?

(1) Identify the market structure in which the firm is operating

14 marks]

(16) Explain your answer in (d)(i).

[2 marks)

The diagram below represents the demand and supply of labour in an economy. In order to ensure improved standard of living for workers, the government imposes a minimum wage of $20. Susly the diagram and answer the questions that follow

[2 marks]

For this section, you are expected to calculate the following based on the table provided:

### Part (a)
1. **Total Variable Cost (TVC)** and **Total Cost (TC)** for all levels of output.
   - TVC is typically calculated by summing the marginal costs (MC) of producing each additional unit.
   - TC is the sum of Total Fixed Cost (TFC) and TVC at each level of output.

### Part (b)
2. **Total Revenue (TR)** at each level of output, given that the price per unit is $30.
   - TR = Price × Quantity of output for each level.

### Part (c)
3. Determine **at what output the firm maximizes profit**.
   - Profit is maximized where the difference between Total Revenue (TR) and Total Cost (TC) is greatest.

### Part (d)
4. Identify the **market structure** the firm operates in.
   - This could be perfectly competitive, monopolistic competition, monopoly, or oligopoly depending on characteristics like price-setting power, number of firms, and product differentiation.

5. Explain your identification of the **market structure**.
   - Based on the characteristics such as the price, costs, or profit-maximizing conditions.

Would you like help calculating these values, or do you need further clarification on any of the concepts?

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### Related Questions:
1. How do you calculate TVC using marginal cost data?
2. What is the relationship between TVC and TC?
3. How can the profit-maximizing output level be identified?
4. What are the characteristics of different market structures?
5. How does a firm behave differently in a perfectly competitive market vs. a monopoly?

### Tip:
To find the profit-maximizing output, compare **marginal cost (MC)** and **marginal revenue (MR)**: the firm maximizes profit when **MC = MR**.

The table below shows the cost schedule of a firm.

Use the information provided to answer the questions that follow.

(1) Calculate the total variable cost (TVC) and total cost (TC) for all levels of output.
(2) Calculate total revenue (TR) at each level of output if price is $30.
(3) At what output will the firm choose to maximize profit?
(4) Identify the market structure in which the firm is operating.
(5) Explain your answer in (4).

Calculate total variable cost, total cost, and total revenue for different levels of output. Learn how to determine the profit-maximizing output and identify the firm's market structure. This problem is ideal for students in Grades 10-12 studying cost analysis, revenue calculation, and market structures.

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