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Quest of ass 4 - ECONOMICS 2010 ASSIGNMENT 4 NAME(Covers...

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ECONOMICS 2010 ** ASSIGNMENT 4 NAME___________________________ (Covers chapters 14 & 15) 1. DEFINE A PERFECTLY COMPETITIVE MARKET. 2. LONDONDERRY CHOCOLATE, A SMALL COMPETITIVE BUSINESS IN SURREY, ENGLAND PRODUCES CHOCOLATE CANDIES IN VARIOUS NUMBERS OF VATS FOR WHOLESALE SHIPMENTS TO CONFECTIONARY STORES. THE TABLE BELOW GIVES INFORMATION ON THE NUMBERS OF VATS AND THE PRICE PER VAT. COMPLETE THE TABLE FOR TOTAL REVENUE , AVERAGE REVENUE , AND MARGINAL REVENUE. NUMBER OF VATS PRICE PER VAT TOTAL REVENUE AVERAGE REVENUE MARGINAL REVENUE 1 £3,400 2 £3,400 3 £3,400 4 £3,400 5 £3,400 6 £3,400 7 £3,400 8 £3,400 3. DEFINE THE 3 GENERAL RULES FOR PROFIT MAXIMIZATION FOR A FIRM OPERATING IN A COMPETITIVE MARKET.
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4. GIVEN THE GRAPH BELOW OF COSTS, REVENUES AND OUTPUT QUANTITY FOR A PARTICULAR FIRM , DETERMINE OR MARK THE OUTPUT THAT MAXIMIZES PROFIT FOR THIS FIRM. Marginal cost Costs & revenue average total cost Price = marginal revenue Average variable cost Output quantity 5. IF THE PRICE FOR A CERTAIN PRODUCT IN THE MARKET IS LOWER
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