Question

Question Unit Tutorials If you need help Question 14 Mark this question Cost 80 Total Cost Total Revenue 70 60 50 40 30 20 10 Output 10 20 30 40 50 60 70 80 90 Profit Given the information in the graph shown here, at which level of production will profit be maximized? O 73 O 69 O 50 80 Save and Conti 20 SOPHALAL BO trece mark OSALLC SAMSUNG

Answer 1

Question 14

Option A is correct - 73

We know that profit = total revenue - total cost. Profit is maximized at the point where the value of (total revenue - total cost) is maximum. Also we can in the graph of profit that the peak is at the point where the level of output is 73 unit.

Question 16

Option A is correct - Oligopoly

Oligopoly is the type of market structure where there are few firms that have market power and sell homogeneous goods. Since there are few firms competing for market share because they all produce homogeneous goods therefore there is price wars between them. They keeping changing the prices for getting maximum share and profit but they fail to do that because of the price wars between those few firms. Thus, they find it profitable to collude or form a collusion and act as a single seller or monopoly to gain maximum profit.

Question 18

Option D is correct- A firm decides to layoff workers in order to meet budegt

Labor leisure tradeoff is a tradeoff that workers who earn wages face between the time spent for working and satisfaction that they get from the leisure activities. The workers or laborers face this tradeoff in order to decide whether they feel more satisfied by earning wages or by doing leisure activities. Thus, if the firm layoffs the workers to control the budget that does not come in the category of labor leisure tradeoff.