Question

7. (a) Differentiate between marginal cost and total cost. (b) The table below shows firm's revenue and costs schedule at different levels of output. Study the table carefully and answer the questions that follow. Quantity of beans Total Revenue Marginal Total cost Marginal cost in (tonnes) (TR) ($) Revenue ($) (TC) ($) (MC) ($) 0 0 - 1 9 9 10 9 2 P 9 18 T 3 30 8 24 6 4 30 4 28 U 5 Q 0 35 7 6 28 -1 43 8 7 28 -3 S 10 8 24 R 65 12 (b) Complete the table by calculating the missing figures for P, Q, R, S, T and U. (c) At what output level is profit maximized? (d) Calculate the profit when the quantity sold is three tonnes. (e) At what output level is the marginal cost highest? 8. The table below shows schedule of the total revenue of a farmer who produces rice. Use the table to answer the questions which follow.

          7.
(a) Differentiate between marginal cost and total cost.
(b) The table below shows firm's revenue and costs schedule at different levels of
output.
Study the table carefully and answer the questions that follow.
Quantity of beans Total Revenue Marginal Total cost Marginal cost
in (tonnes) (TR) ($)
Revenue ($)
(TC) ($)
(MC) ($)
0
0
-
1
9
9
10
9
2
P
9
18
T
3
30
8
24
6
4
30
4
28
U
5
Q
0
35
7
6
28
-1
43
8
7
28
-3
S
10
8
24
R
65
12
(b) Complete the table by calculating the missing figures for P, Q, R, S, T and U.
(c) At what output level is profit maximized?
(d) Calculate the profit when the quantity sold is three tonnes.
(e) At what output level is the marginal cost highest?
8. The table below shows schedule of the total revenue of a farmer who produces rice. Use
the table to answer the questions which follow.

7.
(a) Differentiate between marginal cost and total cost.
(b) The table below shows firm's revenue and costs schedule at different levels of
output.
Study the table carefully and answer the questions that follow.
Quantity of beans Total Revenue Marginal Total cost Marginal cost
in (tonnes) (TR) ()
Revenue ()
(TC) ()
(MC) ()
0
0
-
1
9
9
10
9
2
P
9
18
T
3
30
8
24
6
4
30
4
28
U
5
Q
0
35
7
6
28
-1
43
8
7
28
-3
S
10
8
24
R
65
12
(b) Complete the table by calculating the missing figures for P, Q, R, S, T and U.
(c) At what output level is profit maximized?
(d) Calculate the profit when the quantity sold is three tonnes.
(e) At what output level is the marginal cost highest?
8. The table below shows schedule of the total revenue of a farmer who produces rice. Use
the table to answer the questions which follow.

Added by Eddie B.

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