SECTION A: APPLICATION QUESTION (409%) (b) If the firm is operating in a perfectly competitive market, what price would the firm require to: R2K is a small firm engage in the production of cucumbers. The table below shows the firm's stay in the market in the long run? Explain your answer. (5 marks) output, total revenue (TR) and input costs at each level of output. Answer: Output (unit) 0 1 2 3 4 6 Total revenue ($) 0 30 60 90 120 150 180 210 Land rent ($) 6 6 6 Machinery depreciation (S) 14 4 Labour ($) 15 25 30 35 45 60 80 Fertilizer ()) 18 36 48 Fuel ($) 10 12 14 18 24 32 (a) Calculate the total fixed cost (TFC), total variable cost (TVC), total cost (TC), av fixed cost (AFC), average variable cost (AVC), average total cost (ATC), average revenue (AR.), marginal cost (MC) and marginal revenue (MR.) at each level of quantity. stay in the market in the short rum? Explam your answer. (6 marks) (20 marks) Answer: Answer: Output (unit) 5 TFC (S) TVC ($) TC (S) AFC ($) (mii) shut down temporarily? Explain your answer. (5 marks) AVC (S) Answer: ATC ($) AR ($) MC ($) MR ($)