Explain briefly the relationship between short-run average costs and long- run average costs. The table below...

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Explain briefly the relationship between short-run average costs and long- run average costs. The table below shows the total cost (TC) and total revenue (TR) of Firm Z at different levels of output. Total Output Total Cost (£) Total Revenue (£) 0 0 3,000 100 200 300 400 500 600 5,000 5,100 5,400 6,900 11,400 700 15,600 5,000 1,500 3,000 4,500 6,000 7,500 9,000 10,500 (b) [3 marks] Explain, giving reasons, which market structure Firm Z is operating in. (c) [8 marks] By defining each of the terms below, calculate the following at each level of output: i. Average Total Cost ii. Average Total Revenue iii. Marginal Cost iv. Marginal Revenue (d) [3 marks] Determine the profit maximising level of output and hence the maximum profit the Firm Z can make. Explain briefly the relationship between short-run average costs and long- run average costs. The table below shows the total cost (TC) and total revenue (TR) of Firm Z at different levels of output. Total Output Total Cost (£) Total Revenue (£) 0 0 3,000 100 200 300 400 500 600 5,000 5,100 5,400 6,900 11,400 700 15,600 5,000 1,500 3,000 4,500 6,000 7,500 9,000 10,500 (b) [3 marks] Explain, giving reasons, which market structure Firm Z is operating in. (c) [8 marks] By defining each of the terms below, calculate the following at each level of output: i. Average Total Cost ii. Average Total Revenue iii. Marginal Cost iv. Marginal Revenue (d) [3 marks] Determine the profit maximising level of output and hence the maximum profit the Firm Z can make.

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a In economics shortrun average costs and longrun average costs are both measures of a firms cost structure but they refer to different time horizons Shortrun average costs SAC refer to the total vari... View the full answer