The following data refer to the costs (in K000s) of firm A and the output for its product Output Price Total costs 0 20 1 45 35 2 40 45 3 35 70 4 30 90 Using the table above, determine with explains, i The fixed costs 2 marks ii The profits 3 marks iii The output that maximises profits 2 marks iv The type of market structure 2 marks

Question: The following data refer to the costs (in K000s) of firm A and the output for its product Output Price Total costs 0 - 20

The following data refer to the costs (in K’000s) of firm A and the output for its product

Output	Price	Total costs
0	-	20
1	45	35
2	40	45
3	35	70
4	30	90

Using the table above, determine with explains,

i. The fixed costs 2 marks ii. The profits 3 marks iii. The output that maximises profits 2 marks iv. The type of market structure 2 marks

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ANS WER The fixed costs of firm A can be determined by looking at the Total Costs column in the table As the Total Costs remains constant at 20 000 wh... View full answer

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