QUESTION 9

1. Consider a firm with the following cost structure:

Quantity of Output	??FC??	VC??	TC??
0			100
1		50
2		100
3			250

Which panel below represents the cost curves of the firm? Panela) Panel b) Panel c) Panel d)

(b) Cost (S/week) Cost (S/week) 300 250 300 250- 2007 - - - - 200+---- 150+ - --- - N Quantity of output/week Quantity of output/week (d) Cost (S/week) 300- 250+ Cost ($/week) 300 ----- 250+ 50 --------------------------- 2007 200 - - 150- - - - - -- - - -FC - -- - Quantity of output/week Quantity of output/week

Cost (S/week) 300- 250- 200- 150- 100 50- 0 Cost (S/week) 300- 250- 200 150 100- 50- 0 (c) TC VC FC Quantity of output/week TC VC FC Quantity of output/week Cost (S/week) 300- 250- 200 150- 100 50 0 Cost (S/week) 300- 250- 200- 150- 100- 50- 0 TC VC FC 2 3 Quantity of output/week (d) TC VC FC Quantity of output/week