Question

c) 21 d) 25 10. The diagram shows the price, marginal cost and average cost curves facing a perfectly competitive firm in the short run. What is the firms profit maximising output in the short run? (4 Marks) a) 60 units b) 80 units c) 100 units d) 140 units 11. In the long run, will the industry so that the market supply curve shifts to (4 Marks) the until prices sufficiently to allow all firms to make a normal profit a) Existing firms, exit, right, drop b) New firms, enter, right, drop c) Existing firms, exit, left, rise d) New firms, enter, left, rise 12. Use the production possibility curve (PPC) to answer the question. If Zambia is currently on PPC1, (4 Marks) then point will be an efficient use of resources, while point will be unattainable. Production possibility Curve for Zambia a) E, B b) C, D c) A, F d) D, C 13. Which of the following is a normative statement? (4 Marks)

          c) 21
d) 25
10. The diagram shows the price, marginal cost and average cost curves facing a perfectly
competitive firm in the short run. What is the firms profit maximising output in the short run?
(4 Marks)
a) 60 units
b) 80 units
c) 100 units
d) 140 units
11. In the long run, ______ will ______ the industry so that the market supply curve shifts to (4 Marks)
the ______ until prices ______ sufficiently to allow all firms to make a normal profit
a) Existing firms, exit, right, drop
b) New firms, enter, right, drop
c) Existing firms, exit, left, rise
d) New firms, enter, left, rise
12. Use the production possibility curve (PPC) to answer the question. If Zambia is currently on PPC1, (4 Marks)
then point ______ will be an efficient use of resources, while point ______ will be unattainable.
Production possibility Curve for Zambia
a) E, B
b) C, D
c) A, F
d) D, C
13. Which of the following is a normative statement?
(4 Marks)

c) 21
d) 25
10. The diagram shows the price, marginal cost and average cost curves facing a perfectly
competitive firm in the short run. What is the firms profit maximising output in the short run?
(4 Marks)
a) 60 units
b) 80 units
c) 100 units
d) 140 units
11. In the long run, will the industry so that the market supply curve shifts to (4 Marks)
the until prices sufficiently to allow all firms to make a normal profit
a) Existing firms, exit, right, drop
b) New firms, enter, right, drop
c) Existing firms, exit, left, rise
d) New firms, enter, left, rise
12. Use the production possibility curve (PPC) to answer the question. If Zambia is currently on PPC1, (4 Marks)
then point will be an efficient use of resources, while point will be unattainable.
Production possibility Curve for Zambia
a) E, B
b) C, D
c) A, F
d) D, C
13. Which of the following is a normative statement?
(4 Marks)

Added by Barbara R.

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