Theory of firm questions | form five Economics

A firm is operating under the conditions of imperfect competitive industry. The cost and revenue are given as follows:

TC=2Q+5

AR=8-Q

Where TC=Total Cost, AR=Average Revenue  and Q=Quantity of output produced/Sold.

If this firm is incurring a loss of 77 Tshs;

1. Compute the level of output at which the firm is producing
2. Give six reasons that may have caused this firm to incur loses

Answer / Solution

UNSOLVED

Describe the advantages and disadvantages of centrally controlled economies.

Answer / Solution

UNSOLVED

Define diseconomies of scale and explain six(6) limitations of small scale firms to expansion.

Answer / Solution

UNSOLVED

1. Using a well labeled diagram, distinguish between break- even point and shut- down point of a firm in perfect competition.
2. Examine seven factors which would influence the firm to go on production even when it
   makes losses.

Answer / Solution

UNSOLVED

Study the information given in the following Table and answer the questions that follow:

1. Which market structure is the firm producing?
2. What is its extra revenue?
3. What are its fixed costs and extra costs at all levels of output?
4. What is its profit?

Answer / Solution

UNSOLVED